Giancarlo Nicoli

Long only, long-term horizon, dividend investing, biotech
Giancarlo Nicoli
Long only, long-term horizon, dividend investing, biotech
Contributor since: 2012
Company: QuestForYield
Your work is impressive. Thanks for sharing.
Thank you.
I own FSC, PSEC, TCAP.
I'm weighing whether to buy some BDCL also, which is a 2x leveraged BDC index tracker.
My view is that you do want to know what you have, keep track of progress or lack thereof, see whether those companies are able to keep non-accruals low.
While stock price appreciation has been absent of late, dividends are coming in. I like that kind of "cash flow", so to speak, because I'm able to reinvest the proceeds and diversify and in turn further increase the cash flow (compound interest).
I think I will buy something on weakness. Either another name in the space, i.e. MAIN for example, which I don't own currently, or the 2x leveraged tracker.
Thank you.
As I grow older, I'm shifting my investment philosophy, so to speak. I'm mostly buying dividend-paying companies.
RM does not pay dividends right now, but its recent weakness might be a buying opportunity.
Thanks for your comments.
Factoids... awesome. Just an awesome article. Thank you.
Not in the USA.
DNDN got a somewhat extended label in the European Union due to the fact that DNDN showed new, more compelling data wrt efficacy at earlier states of the disease.
I'll follow up on that as I live in Italy and I'll have first-hand news.
DNDN needs new clinical data in the USA to obtain an extended label from the FDA. It will take time.
Excellent article. Thank you.
Me too. I own it. Timing has been unfortunate at best. I still don't see a reason to sell, though.
Their strengths are still there. I'm holding for now.
Thanks for your comment.
How far in the future the Fed will start raising short term rates? I guess nobody knows. Not even Fed officials - there's going to be some turnover over there also in the coming months.
Will TCAP actually not be negatively affected if they have already rolled their current assets?
I believe they will be able to earn roughly the same spread.
With rising rates, almost every equity investment will suffer, though.
I'm not trying to time the market.
TCAP did well during the last downturn, so I presume they will do well during the next.
While TCAP did better than the S&P, share price went down nonetheless.
Again, I do not want to time the market. I invest mostly into dividend-paying companies. I re-invest the dividends as soon as they come in.
TCAP's debts also are on fixed rate. With rising rates, they will earn (roughly) the same.
As rates increase, both debt and credit interests will increase, leaving (I suppose) TCAP with the same spread.
It's actually the opposite. You can enroll into a dividend-reinvestment plan (DRIP).
Please see their FAQ page:
http://bit.ly/17adIUi
"How do I opt out of the Dividend Reinvestment Plan ("DRIP")?
Our DRIP has been in place since our IPO in 2007. If you are an existing shareholder and have been receiving your dividends correctly, you will not need to do anything when new dividends are announced.
If you are a new shareholder, you should check with your broker to be sure your account is set up to receive dividends the way in which you prefer. Our DRIP is set up to be automatic unless a shareholder "opts out" and elects to receive cash for dividends instead of additional TCAP shares – BUT, many brokerage firms automatically opt their clients out of DRIPs. You will want to check with your broker to be sure your TCAP dividends are paid correctly.
Conversely, if you are not currently participating in the DRIP but would like to, you will also need to notify your broker."
I get cash each three months.
Hope it helps.
Really no, I didn't.
Yes I'm aware PSEC is well positioned.
The biggest BDCs have been able to finance at fixed rates though. I have no links to substantiate my previous statement. I recall that from memory of transcripts I've read over the last year.
I had a quick glance at it.
They IPOed in April of last year. They are too young. No meaningful (to me) observable trend.
Thank you.
I'm also watching MAIN.
As a buying opportunity, I'm waiting for a meaningful correction... which never materializes.
TCPC is on my watch list but I do not routinely do research on it (sorry).
Thanks. I'm also long TCAP and PSEC.
I'm pleased you're happy.
Thank you very much indeed.
Thanks for the nice words.
One of the reasons I wrote the article is to answer to your question. It appears that internally managed BDCs are more shareholder-friendly than externally managed ones.
That's not to say, however, that all externally managed BDCs are bad investments.
Thank you for your nice words.
It's a difficult decision. I own TCAP fwiw. But plan to buy some MAIN also on any meaningful dip from current levels!
I aknowledged that in the article. Management says it's a transient situation. Management is buying stock.
Thanks for the comment anyway.
By Marc Jones
LONDON (Reuters) - The rout in emerging markets eased on Friday and world shares headed for a second day of gains, as data suggesting the global economy is improving took the edge off concerns about the impact of a cut in U.S. monetary stimulus.
Link: Emerging market rout eases as data lifts growth hopes
http://yhoo.it/14oujni
As far as the LBP is concerned, I don't buy frequently because stocks are expensive in my opinion.
As far as my personal portfolio is concerned, I own many of the suggested stocks (AGNC, FSC, NTI, STON, TCAP, VNR) as disclosed at the top of the article.
I will actually buy EDIV myself when I'll receive the next round of dividends from my real portfolio.
Thanks for you comment.
Factoids, your articles are excellent.
Thank you for sharing.
Refiners lost ground due to the fact that Valero (US:VLO) said Tuesday (April 02, 2013) it would spend $300 million to $400 million to comply with new emissions regulations by 2017. (See: http://bit.ly/11rapFR).
NTI just said that proposed updated standard will not have a material financial impact. See: http://yhoo.it/10yZNCj
The recent tumble represents a very good entry point imo.
I stated in the article that "NTI is a variable distribution MLP. In good times, the payouts would rise; in bad times, they would fall."
Risks are known.
If things change, I'll sell it. In the meantime, I'm going to collect the very rich (as a percentage of this stock price) distributions.
Thanks for your comment.
Oh, thank you very much!
Anyway, this is a long term holding. Portfolio is going to enjoy a good dividend for some time to come.
Short term gyrations are meaningless imo.
I think your strategy might work.
And, NTI is 5% of LBPortfolio. ;-)
Thanks very much for the detailed comment. It confirms that NTI is unique because of its physical location.
Although I live in Italy, Portfolio is US based.
True, those living abroad should take into account that local taxes apply.