Friday, July 17, 2015

WHAT IS THE GAME PLAN AT CORNERSTONE FUNDS FOR CRF AND CLM?

Not sure what the directors of CRF and CLM are up to now.  Since I've held stakes in the funds, they have done rights offerings, increasing the number of shares outstanding.  Then they did reverse stock splits, reducing outstanding shares, which kind of made sense.  Now I see CRF is doing another rights offering and the share price has tanked.  Of course that's not hard to figure out, since they are issuing more shares again, so you'd expect the share price to drop.  I have to admit, I don't understand the logic behind it.  Yes they'll take in more money and possibly increase total equity, but with more shares outstanding who is really going to see any benefit?  I can't help but wonder if they have the shareholder's best interests at heart.  I'm thinking no.  Definitely won't be buying any more shares until I find out what's really going on here.

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