Nicholas Marshi's  Instablog

Nicholas Marshi
Send Message
Nicholas Marshi is the Chief Investment Officer of Southland Capital Management (SCM). The Company is a Registered Investment Adviser ("RIA") in Santa Monica, California. SCM's principal expertise is in the area of leveraged finance to U.S. private companies, with a focus on the... More
My blog:
BDC Reporter
  • KCAP Announces IIQ 2013 Dividend. We Discuss Dividend Outlook. 0 comments
    Jun 17, 2013 12:53 PM | about stocks: KCAP

    June 17, 2013: Mid-sized, Collateralized Loan Obligation ("CLO") managing KCAP Financial ("KCAP") announced a IIQ 2013 dividend of $0.28, unchanged from the prior period.

    BDC REPORTER'S TWO CENTS: No great surprise here. KCAP kept the dividend unchanged, because earnings were a bit behind the distribution in the IQ 2013, and the Company recently raised additional new equity and issued more shares. On the other hand, earnings are still headed upwards thanks to a new CLO launched a few days ago, and additional earnings about to hit the P&L from an earlier CLO. (A quick word about the quirks of CLOs for the issuer: there's usually a delay between the launch of a CLO and when the investor in the equity tranche of the instrument starts earning the big bucks. KCAP is about to get the benefit of one CLO launch and will get the other in the third quarter of 2013).

    The Analyst Consensus is for $1.07 in Earnings Per Share in 2013, and $1.15 in 2014, from $0.89 in 2012. (EPS here is Net Investment Income Per Share, not including Realized and Unrealized Gains).

    OUTLOOK FOR THE DIVIDEND: We believe the Analyst Consensus is low longer term, even though profits in the CLO market are harder to come by. So we're expecting profits to overshoot the consensus. Likewise, we expect the Company will be increasing the dividend modestly in the next couple of quarters.

    Disclosure: I am long KCAP.

    Stocks: KCAP
Back To Nicholas Marshi's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.