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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Cosmo Daisey who wrote (25336)	11/24/2006 1:32:16 AM
From: Paul Senior	Respond to of 78702

Cosmo Daisey, welcome to the thread and thanks for posting some of your picks. Several people here are looking for high yield ideas, and you've brought in a nice selection for review.

To: Cosmo Daisey who wrote (25336)	12/4/2006 5:37:54 AM
From: vi2007	Read Replies (1) \| Respond to of 78702

Appreciate your list of high yielding CEFs. None really meet my "buy" criteria but then several of the ones I hold no longer do either. In particular, your COY and DHF have really high expense ratios at 2.39% and 2.98% according to ETFCONNECT.COM. What Im looking for, but havent been finding lately, is a reasonable yield, low expenses and one that trades at a DISCOUNT to its NAV. Preferably one that is trading at an abnormally high discount to NAV. Im not real high on junk bond funds but would consider one if it met my other criteria. My first CEF buy was ZTR as it was recommended by someone I respect as a good money market alternative. I bought it in late August of 05 and for some time, it actually UNDERperformed a money market fund. I kept reinvesting divdends and now it trades at an 11% premium and Its hard for me to hold something that trades so far above NAV despite its nice monthly distribution. Im up 28.23% in just over 15 months. When I bought it, it yielded 10.55% and was trading at a discount to NAV of 5.20%. My next buy came 12/28/05 and I found it by scanning insider buy reports. The secretary and portfolio manager bought 7000 shares a few days prior and it was yielding 9.43% and traded at an 11% discount at the time. Im up about 23.3% on EVV in just over 11 months. (I didnt do dividend reinvestment here but just added the dividends & interest to figure my total return) Next came JQC 2/6/06. It was trading at a 13% discount to NAV and an 8.08% yield and had just announced a 10% stock buyback. They later increased their monthly distribution. It now trades at a less than 1% discount to NAV and a 7.99% yield. Im up about 22% in 10 months. The next day, 2/7, I bought UTF, I saw an insider buy and it traded at a 14.45 discount to NAV with a relatively low 5.87% yield. Im up 23.1% in 10 months. My final CEF buy was RTU on 3/27 when I saw a recent insider buy. It sported a 7.42% yield and traded at a 15.5% discount to NAV. Im up 23.72% in just over 8 months. The last 2 have performed well, but unlike the others, their discounts to NAV havent narrowed as I had hoped. I have been actively looking for more to buy but just havent found them. Indeed, since the ones I have bought have performed SO much better than I anticipated, Im wondering if I just got lucky from a timing perspective and maybe I should be selling some of them. (I bought these looking for perhaps an 8-12% annualized total return) I an hoping some opportunities present themselves later this month as I have WAY too much cash sitting idle and have for a long time. As I said before, I am new to "income investing" as I always used to feel like I could do a lot better picking value microcap stocks. (And for many, many years, I did just that.)