Seeking Alpha

More on Prospect Capital Q1 results

  • Net increase in net assets from operations of $82.1M or $0.26 per share vs. $44.4M and $0.20 per share one year ago.
  • Net investment income of $98.5M or $0.31 per share vs. $59.6M and $0.26 a year ago. Quarterly dividend is in the area of $0.33.
  • Net asset value per share of $10.68 off a nickel from the end of Q4 after payment of dividend.
  • Debt-to-equity ratio of 67.9% up from 48% at the end of Q4. "Our objective is to grow net investment income per share in the coming quarters by focusing on matched-book funding to finance disciplined and accretive originations across our diversified lines of business."
  • Q1 investment highlights: Enters the aircraft leasing sector with $92.6M investment in Echelon; enters the "peer-to-peer" online direct lending industry with roughly a $40M investment; launched a Prospect senior loan strategic initiative (PSEN) as a yield enhancement for business. Closing on PSEN expected in a few months.
  • CC at 11 ET
  • Source: Press Release
  • Previously: Prospect Capital misses by $0.01, misses on revenue
  • PSEC +0.1% AH
Comments (9)
  • Info Seeker 89
    , contributor
    Comments (131) | Send Message
     
    Sort of a miss in my opinion. Scott Kennedy called the nav change. http://seekingalpha.co...
    6 May, 05:14 PM Reply Like
  • chewyTree
    , contributor
    Comments (3) | Send Message
     
    It is interesting to see PSEC branching into so many different directions.
    6 May, 05:14 PM Reply Like
  • drmwsunner
    , contributor
    Comments (115) | Send Message
     
    Back to where I bought in. No big deal. Slowly shifting to dividend stocks.
    6 May, 05:15 PM Reply Like
  • happy_cz
    , contributor
    Comments (14) | Send Message
     
    You still have ~12% yield, BDCs are not growth stock.
    6 May, 05:28 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3673) | Send Message
     
    $10.68 new target price then, will look for the pull back to that point at least.
    6 May, 07:28 PM Reply Like
  • c21vintage
    , contributor
    Comments (26) | Send Message
     
    Earnings up to .31 for the 1/4....pays .33+ dividend, so we continue to nip into cash, but catching up and there was cash built up...monthly paymt allows dividend reinvestment to compound the 11% to make it more like 13%, not bad if the stock does nothing..
    6 May, 09:31 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3673) | Send Message
     
    So what's going on with this reclassification? How much does this affect book value and future growth?
    7 May, 09:48 AM Reply Like
  • drmwsunner
    , contributor
    Comments (115) | Send Message
     
    Huge selling yesterday and today has dampened my enthusiasm for this BDC. However, will continue to hold despite the huge losses. Poor management response to the SEC's reclassification rebuke is causing this drop along with ETF selling. Now this can be bought at a discount to the NAV for some time to come unless BV is totally wiped out because of the new accounting required. How in the world did they get this far as a listed BDC with that accounting practice?
    8 May, 10:23 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3673) | Send Message
     
    Their response is the NAV will go up. Also, the effect of the income will be neutral. I don't see what you are so down about it for, other than you and a lot of other people are running away scared of the SEC telling them to reclassify some assets, and you are treating it as if they are investigating the company for fraud. Nothing is farther from the truth.
    8 May, 10:29 AM Reply Like
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