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BUY, HOLD, AND COLLUSION

August 16, 2018

On August 10, we suggested you look at AWF.  Today we saw a positive article and have provided a link below to the full article.  BUY.

AllianceBernstein Global High Income Fund (NYSE:AWF)
AWF seeks “a high level of current income, with a secondary objective of capital appreciation. The fund will invest globally in all fixed-income sectors where they see opportunity.” AWF states they will “under normal market conditions, invest substantially all of the Fund’s net assets in lower-rated bonds.”
The fund has total managed assets of $1.206 billion, its size provides sufficient liquidity in the event of wanted to sell-out of the fund. The fund does utilize no bank borrowings at the moment for leverage. However, one will notice that the fund carries leverage from “investment operations” of around 37.23%. This investment operations leverage would be due to some of the underlying holdings. The best way to explain this is the fact the fund holds Credit Default Swaps and Interest Rate Swaps, these underlying holdings are of notional value only, meaning that this is only its spot price. Basically, the money is not really there but the fund will have to come up with the money if a default event occurs.
AWF offers investors a distribution yield of 7.29%, the fund has been maintaining the per share amount of $0.0699 since January 2017.
The fund currently trades at $11.50 per share, with a NAV of $13.30 per share. This equals out to a 13.53% discount at the moment. Further tempting the attractiveness of this fund is that the one-year z-score sits at -1.50. Even on a 5-year basis the average discount sits at 8.50%, this presents a relatively attractive time to be investing in AWF; at least based on its past performance. Of this list, I personally hold AWF and have written on the fund in the past.

https://seekingalpha.com/article/4199738-closed-end-funds-5-bond-funds-trading-wide-discount

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We see a nice positive article on CLDT Chatham, a holding in the Core Portfolio.  We are up ten percent, in addition to the dividends, but the momentum is now heading down.  We would HOLD.  It is not time to buy right now.

Chatham Lodging Trust is a premier U.S. lodging REIT with a high-quality real estate portfolio and relationships with top hotel brands. The company rakes in the highest EBITDA-margin in its industry and the highest RevPAR in its immediate peer group. The company covers its dividend with adjusted funds from operations, but has a volatile earnings profile and AFFO-payout ratio. Shares are not too expensive yet, and throw off a decent 6.3 percent dividend that is paid on a monthly distribution schedule. Despite the risks, Chatham Lodging Trust is still a ‘Buy’ at today’s valuation point, in my opinion. Buy for income and capital appreciation.

https://seekingalpha.com/article/4199712-chatham-lodging-trust-6_3-percent-yielding-top-shelf-lodging-reit-buy?app=1&isDirectRoadblock=false

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The collusion of the DOJ and FBI with the Russians has now come to light…..but you will never hear about it on CNN and ABC.  FOX and Hannity have been all over this story.  This is an article (Investors Business Daily) that you really need to read.  Go to link below to read more.

Congress, using the documents it pried out of the Justice Department after repeated requests, is busy getting at what might turn out to be the scandal of the century. And Congress is now doing the work the Justice Department and FBI won’t.

Russian Collusion: It Was Hillary Clinton All Along
Russia Investigation: It’s beginning to look as if claims of monstrous collusion between Russian officials and U.S. political operatives were true. But it wasn’t Donald Trump who was guilty of Russian collusion. It was Hillary Clinton and U.S. intelligence officials who worked with Russians and others to entrap Trump.

That’s the stunning conclusion of a RealClear Investigations report by Lee Smith, who looked in-depth at the controversial June 2016 Trump Tower meeting between officials of then-candidate Donald Trump’s campaign staff and a Russian lawyer known to have ties with high-level officials in Vladimir Putin’s government

.
The media have spun a tale of Trump selling his soul to the Russians for campaign dirt to use against Hillary, beginning with the now-infamous Trump Tower meeting.
But “a growing body of evidence … indicates that the meeting may have been a setup — part of a broad effort to tarnish the Trump campaign involving Hillary Clinton operatives employed by Kremlin-linked figures and Department of Justice officials,” wrote Smith.
Smith painstakingly weaves together the evidence that’s already out there but has been largely ignored by the mainstream media, which have become so seized with Trump-hatred that their reporting even on routine matters can no longer be trusted.
But he adds in more evidence that the Justice Department only recently handed over to Congress. And It’s damning.

Memos, emails and texts now in Congress’ possession show that the Justice Department and the FBI worked together both before and after the election with Fusion GPS and their main link to the scandal, former British spy and longtime FBI informant Chris Steele.
As a former British spook in Moscow, Steele had extensive ties to Russia. That’s why he was picked as the primary researcher to compile the “unverified and salacious” Trump dossier, as former FBI Director James Comey once described it.
Steele’s dossier, for which Fusion reportedly received $1 million, was largely based on interviews with Russian officials. And who paid that $1 million? As we and others have reported, it was Hillary Clinton’s campaign and the Democratic National Committee, then under Hillary’s control.
The media knew all this, of course, but largely ignored it.
The great irony here is that, after more than two years of investigating, the only real evidence of collusion with Russians at all points to Hillary Clinton. It was she who hired Steele to dig up dirt on Trump using Russian sources.
But now, it turns out, it goes even deeper than that.

https://www.zerohedge.com/news/2018-08-15/was-hillary-real-colluder

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