Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Adams Express
Old 04-28-2015, 02:41 PM   #1
Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,477
Adams Express

Adams Express (ADX) is one of the oldest CEF around, being around as an investment company since before the great crash of 1929. Presently there is a shareholder vote scheduled for Thursday where a hedge fund has gotten on the ballot a request to tender shares and convert possibly to an ETF, which if successful would immediately result in approximately 14% one time increase as the discount is eliminated.

I am guessing the management opinion is the vote is close as I have received 3 calls in the past 2 weeks requesting I vote with management early and over the phone. As a short term gamble for a potential 10-14% return with basically only market risk, it is an interesting play.

Running_Man is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-03-2015, 03:25 PM   #2
Thinks s/he gets paid by the post
MooreBonds's Avatar
Join Date: Aug 2004
Location: St. Louis
Posts: 1,900
If it is successfully forced to become an ETF, remember that there is no requirement that it suddenly trade with a zero discount. It could still have a 5% (or more!) discount. It would require big arbers to sell short all of the holdings in the ADX portfolio and buy a similar $ worth of ADX in order to get truly close to zero discount. (outside of the likes of the S&P 500 or other massively big indexes, many ETFs trade with at least some small premium/discount of 0.25%-0.75%, depending on the bid/ask at any given point in time). Absent that, why would people suddenly pay more for an ETF of the same investment company as before it became an ETF?

If it were an open-ended mutual fund, then I could understand, as it would then have a zero discount and you could pick up some 'easy money'. But is the proposal to simply become an ETF? Or a mutual fund?
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
John Adams HBO Notmuchlonger Other topics 21 07-31-2008 04:09 PM
Scott Adams becomes Pointy-Haired Boss twaddle Other topics 2 11-12-2007 12:07 AM
Scott Adams on Managed Funds BigMoneyJim FIRE and Money 6 12-02-2006 03:46 PM
Don Adams of 'Get Smart' dead @82 dex Other topics 9 09-27-2005 03:20 PM
Dilbert/Scott Adams' guide to personal finance... soupcxan Other topics 2 10-01-2004 06:53 AM


All times are GMT -6. The time now is 06:11 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.