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

To: Ditchdigger who wrote (57110)	4/5/2016 9:13:08 AM
From: E_K_S	Read Replies (2) \| Respond to of 78659

Tekla Healthcare Opportunities Fund (THQ) - A small add for me to this CEF Drug/Pharma fund (selling 10% below NAV) THQ fund pays a monthly dividend made up of capital gains and div income. They also use 20% leverage (still small for a CEF fund). The fund is made up of good Parma/Drug dividend payers and then other more risky Bio-tech companies. The fund is rather new only w/ about an 18 month track record. The company announced they would be buying back 12% of shares thru 6/2016 too. I have about a 2% portfolio position in the fund w/ three different Buys all in th $16.00/share price range. EKS

To: Ditchdigger who wrote (57110)	4/5/2016 11:02:04 AM
From: Graham Osborn	Read Replies (2) \| Respond to of 78659

This is where I disagree. I don't think just because a sector is correcting or entering a bear market means it is the time to rotate in. Rather, I like to think of the entry point as where you have good businesses that are both (1) totally ignored and (2) totally undervalued. This policy of just buying whatever is getting ripped apart on the headlines this morning doesn't sit well. FWIW, I am short 3 stocks in your list below, and made a nice profit on one of them this morning. These investments were made based on (1) a secular view that the healthcare sector has been in a 2-phase bull market since the late 90s and will be in a bear market for the next 5 years or so (2) the view that all 3 of the aforementioned companies had made large acquisitions with debt that will not be serviced by projected EBITDA. Unrelated - does anyone here hold GRA and what is their investment thesis?