Seeking Alpha

Prospect wins appeal with SEC; no restatement necessary

  • Prospect Capital (PSEC) has been in the penalty box for a few weeks after the SEC asserted certain wholly-owned holding companies needed to be consolidated into its results, but on appeal the SEC staff has agreed with Propsect's rebuttal of that conclusion.
  • Shares are currently halted.
  • Source: Press Release
Comments (44)
  • FadeToBlack
    , contributor
    Comments (96) | Send Message
     
    Sweet, looks like those Nov calls I bought cheap should spike back up now.
    10 Jun, 04:11 PM Reply Like
  • Tack
    , contributor
    Comments (12964) | Send Message
     
    Selling all those fat-premium $10 puts sure feels good, now.

     

    Come home to ma-ma.
    10 Jun, 04:12 PM Reply Like
  • c21vintage
    , contributor
    Comments (29) | Send Message
     
    Cha CHING!!!! Out of the penalty box, should regain investor confidence quickly.
    10 Jun, 04:12 PM Reply Like
  • BDC Buzz
    , contributor
    Comments (2896) | Send Message
     
    FYI - I have added PSEC back to the 'Buy' recommendations.
    10 Jun, 04:12 PM Reply Like
  • drewmeister7777
    , contributor
    Comments (11) | Send Message
     
    Bought another chunk recently at $9.63. Looking forward to the open tomorrow.
    10 Jun, 04:14 PM Reply Like
  • soycapital
    , contributor
    Comments (57) | Send Message
     
    May be looking at a 10% increase.....
    10 Jun, 04:17 PM Reply Like
  • BDC Buzz
    , contributor
    Comments (2896) | Send Message
     
    I believe all BDCs will be up tomorrow on the news.

     

    BDCL could be the smarter play - I may be buying some as well.
    10 Jun, 04:17 PM Reply Like
  • locutus49
    , contributor
    Comments (973) | Send Message
     
    BDC Buzz, I give you credit for giving PSEC a hold rating during the SEC and other threats, and not a sell rating, which would have been the easy thing to do. Indeed, I held (I have so much PSEC I did not want to add even at a low price).

     

    We'll see if a certain anti-PSEC author deploys another line of attack.
    10 Jun, 05:08 PM Reply Like
  • BDC Buzz
    , contributor
    Comments (2896) | Send Message
     
    Locutus - In order for PSEC to be a 'sell' it would have be something much more than a potential restatement.
    10 Jun, 05:17 PM Reply Like
  • locutus49
    , contributor
    Comments (973) | Send Message
     
    Still, good judgment on your part.
    10 Jun, 05:19 PM Reply Like
  • maybenot
    , contributor
    Comments (3489) | Send Message
     
    Good job Buzz. Look forward to your next articles.
    10 Jun, 06:19 PM Reply Like
  • Info Seeker 89
    , contributor
    Comments (140) | Send Message
     
    BDC Buzz: You said in a comment you sold psec after they reported in May. Did your sell rating go to a hold because the stock dropped? - Rob
    11 Jun, 12:18 AM Reply Like
  • BDC Buzz
    , contributor
    Comments (2896) | Send Message
     
    IS89 -

     

    I have never had a 'sell' rating for PSEC and I think the other comments here would support that.

     

    If you go through my comments I had been considering selling for a while because I did not see much upside in stock price when it was $10.70. It seems to be range bound and for yield investors that is perfectly fine and now that it is below the range it could be a win win.

     

    Also keep in mind that my recommendations are not for me personally. There are plenty of higher and lower risk stocks that I recommend but would not own because they do not fit my profile.
    11 Jun, 01:02 AM Reply Like
  • Guardian3981
    , contributor
    Comments (1947) | Send Message
     
    I had a gut feeling to buy more into BDcs today, should of listened to it.
    10 Jun, 04:18 PM Reply Like
  • TEX1961
    , contributor
    Comments (44) | Send Message
     
    I am glad I stuck with my gut instincts on PSEC, I doubled my position at 9.50. It is good to be right every once in a while.
    10 Jun, 04:19 PM Reply Like
  • Len Friedman
    , contributor
    Comments (49) | Send Message
     
    When I stick with my gut I run for the toilet paper. lol

     

    I did exactly the same thing, doubled the position at $9.45.
    10 Jun, 04:34 PM Reply Like
  • locutus49
    , contributor
    Comments (973) | Send Message
     
    Glad I stuck with it, too.
    10 Jun, 05:06 PM Reply Like
  • Hans Thoma
    , contributor
    Comments (184) | Send Message
     
    Nice. But too bad that nearly all the increase happens before the opening bell.
    10 Jun, 04:19 PM Reply Like
  • Hope128
    , contributor
    Comments (107) | Send Message
     
    Wish I had added at the dip, didn't expect it got resolved so quickly.
    10 Jun, 04:24 PM Reply Like
  • AZKID44
    , contributor
    Comments (61) | Send Message
     
    Great news for PSEC shareholders !!! I may be adding more to my PSEC position. I may also look a BDLC per BDC Buzz comments. All in all, tomorrow should be a good day for BDC's.
    10 Jun, 04:31 PM Reply Like
  • BDC Buzz
    , contributor
    Comments (2896) | Send Message
     
    Looks like PSEC is trading at $10.16 right now - 3.4% bump.
    10 Jun, 04:37 PM Reply Like
  • FadeToBlack
    , contributor
    Comments (96) | Send Message
     
    Bid at 10.17, ask at 10.20... bet it moves up nicely from here even in AH trading.
    10 Jun, 04:38 PM Reply Like
  • FadeToBlack
    , contributor
    Comments (96) | Send Message
     
    Now 10.25 and 10.27...
    10 Jun, 04:41 PM Reply Like
  • FadeToBlack
    , contributor
    Comments (96) | Send Message
     
    10.29 and 10.34....
    10 Jun, 04:47 PM Reply Like
  • FadeToBlack
    , contributor
    Comments (96) | Send Message
     
    10.39 and 10.40. We could see it get to near it's price prior to the SEC meltdown.
    10 Jun, 05:24 PM Reply Like
  • drking
    , contributor
    Comments (192) | Send Message
     
    good deal all the analyst's said this would make no difference bought 2000 at $9.354 Almost like LINE when the ambulance chasers show up everybody runs the price on a good stock goes down excellent sale price double digit dividend also
    10 Jun, 04:43 PM Reply Like
  • anastis
    , contributor
    Comments (87) | Send Message
     
    Well, I certainly am glad I took the actions that I did over the last month.

     

    ;-)
    10 Jun, 04:45 PM Reply Like
  • Archman Investor
    , contributor
    Comments (2385) | Send Message
     
    Long $PSEC for ages now.

     

    I am laughing more at the law firms that are going to have to withdraw all their phony class action lawsuits. This sort of quick action, SEC resolution really exposes so many of these law firm for what they are: trash! (and I am probably being to kind)
    10 Jun, 04:53 PM Reply Like
  • Husker Bob
    , contributor
    Comments (283) | Send Message
     
    Last count I had there were 11 firms "investigating" or otherwise trolling for clients. Probably more than that. Wish there was a way to put these ambulance chasers out of business. When will we have legal reform to address all of these crooks? Probably never, but they are doing a great disservice to this country.
    10 Jun, 05:11 PM Reply Like
  • jmkdog
    , contributor
    Comments (209) | Send Message
     
    all I can say is...........

     

    YIPEEEEEEEEEEEEEEEEEEE...
    10 Jun, 05:56 PM Reply Like
  • COBeeMan
    , contributor
    Comments (1274) | Send Message
     
    Husker - spreading the word and educating the uninformed about their tactics and marking their reputation is probably the best way to decrease their affect.
    11 Jun, 09:08 AM Reply Like
  • Jack Cumming
    , contributor
    Comments (87) | Send Message
     
    .............and they lived happily ever after!
    10 Jun, 04:58 PM Reply Like
  • DivSage
    , contributor
    Comments (5) | Send Message
     
    What does it mean when shares are halted? Is that just because the market has closed?
    10 Jun, 06:02 PM Reply Like
  • stunato
    , contributor
    Comments (14) | Send Message
     
    Div
    Generally means there is very profound news about to hit the wire ,and by halting trading they give everyone a chance to consider their position, before trading begins anew.
    10 Jun, 06:48 PM Reply Like
  • DivSage
    , contributor
    Comments (5) | Send Message
     
    Thanks!
    10 Jun, 09:52 PM Reply Like
  • bcavella
    , contributor
    Comments (3) | Send Message
     
    No restatement of history, but it looks like there will be some accounting changes going forward. From the PSEC release:

     

    1. Prospect's historical non-consolidation of certain wholly-owned and substantially wholly-owned holding companies will not require restatement of Prospect's prior period financial statements.

     

    2. Upon the adoption of ASU 2013-08 by Prospect for the June 30, 2015 fiscal year, Prospect will begin consolidating on a prospective basis certain of its wholly-owned and substantially wholly-owned holding companies formed by Prospect in order to facilitate its investment strategy.
    10 Jun, 06:02 PM Reply Like
  • toodoo2
    , contributor
    Comments (4) | Send Message
     
    Dang! And I was going to buy some more on the 13th. So unless the re-balancing holds it down ( I doubt it), I guess that's out.
    10 Jun, 06:02 PM Reply Like
  • rickrack
    , contributor
    Comments (3) | Send Message
     
    I always believed in the quality of Prospect.
    But nevertheless it feels good to read such news
    10 Jun, 06:03 PM Reply Like
  • collectionattorney
    , contributor
    Comments (2) | Send Message
     
    Did anyone read the press release where PSEC said going forward they would start consolidating certain companies?

     

    "Upon the adoption of ASU 2013-08 by Prospect for the June 30, 2015 fiscal year, Prospect will begin consolidating on a prospective basis certain of its wholly-owned and substantially wholly-owned holding companies formed by Prospect in order to facilitate its investment strategy."

     

    This seems like nothing changes for the past but going forward they will do what the SEC wanted.
    10 Jun, 06:03 PM Reply Like
  • locutus49
    , contributor
    Comments (973) | Send Message
     
    Well, some of us, at least me (during a phone call with management) wanted them to arrive at a compromise to end this quickly. I'm guessing that is what they did: compromise. Everyone can declare victory. Good business.
    10 Jun, 06:55 PM Reply Like
  • newnnly
    , contributor
    Comments (243) | Send Message
     
    Bought 300 @ 10.30. in AH. Brings my cost basis down to 10.60.
    10 Jun, 07:21 PM Reply Like
  • Popcornkitty
    , contributor
    Comments (12) | Send Message
     
    Just bought another 100 shares @ 10.31 today; I'm definitely looking forward to seeing what's in their news tomorrow AM.
    10 Jun, 07:29 PM Reply Like
  • newnnly
    , contributor
    Comments (243) | Send Message
     
    @ Popcornkitty-

     

    "I'm definitely looking forward to seeing what's in their news tomorrow AM."

     

    Well one thing I think we'll see is green.
    10 Jun, 07:39 PM Reply Like
  • Popcornkitty
    , contributor
    Comments (12) | Send Message
     
    Oh that's great @ NLY - Green has always been my favorite color.
    10 Jun, 07:41 PM Reply Like
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