NBXG - A Look Back At My 'Sell GGT Buy NBXG' Article A Year Later

2024-06-25 12:22:30 ET

Summary

• Those who follow my articles probably know how bullish I have been on the Neuberger Berman Next Generation Connectivity Fund Inc over the past year.
• On the other hand, I've written several articles over the years telling you to sell The Gabelli Multimedia Trust Inc. due to its unwieldy NAV yield that continues to decimate GGT's NAV.
• Because if you can't reasonably be expected to cover your NAV yield, then you will see continuous NAV erosion resulting in a distribution cut, or in GGT's case, another rights offering.
• But why would anyone participate in GGT's rights offering at a massive 35% premium over NAV when you could just buy NBXG at a discount?
• And with an almost 100% valuation difference between NBXG and GGT a year ago, it was sheer madness to own GGT when you could have owned NBXG all along.

I should first say that I have doing these relative valuation comparisons on equity CEFs since I started writing on Seeking Alpha in 2011....

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