I still have some room in my VMSLO fund and after screening on BarChart for stocks hitting new highs that trade below 100K per day came up with Energy Income & Growth Fund -- FEN. Not all my plays are for price appreciation only. Sometimes you need to look at total return. This stock has doubled in price this year and still pays a 7.50% dividend. Energy is where it's at.
The fund is a closed-end fund which invests in Master Limited Partnerships of energy related companies. Some of what you are paying for is expertise in this area.
On a technical side BarChart show this stock has had price appreciation in 15 of the last 20 trading sessions and is 5 for 5 recently. It has had a 17.25% price appreciation in the last 65 days and almost doubled in price this year. There are buy signals on 13 of BarChart's 13 technical indicators for a 100% buy rating.
Over on Motley Fool CAPS members think the fund will beat the S&P 500 by a vote of 48 to 8 with the All Stars in agreement 13 to 1.
Recommendation: I'm adding Energy Income & Growth -- FEN to my Marketocracy portfolio VMSLO around 23.80 with a stop loss no lower than 22.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com
Disclosure: no positions in FEN at time of publication
Have you completely thought this through? According to cefconnect.com, FEN is trading at around a 14% premium above its current NAV.
ReplyDeleteI had been told that closed-end funds were a bad investment because the distributions you receive are just returns on capital. What is your opinion about them?
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