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SkiDad13

SkiDad13
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  • American Capital Agency Corp. Grows Toward The Future [View article]
    Bob Anderton is correct! The last 3 dividends declared and paid were
    at a quarterly rate of $0.65
    The article needs to be revised and corrected.
    Aug 7 08:45 PM | Likes Like |Link to Comment
  • Prospect Capital Corp.'s Dividend And Net Asset Value Sustainability Analysis (Post Fiscal Q3 2014 Earnings) - Part 2 [View article]
    Hmmmmmm . . . . . .

    Wanting to, and always willing to, admit my errors, in this case . . . I'm sorry, but that's just not the case.

    As stated above, "these investments "could" have a greater "risk" for principle losses." you're clearly implying the potential for a loss of monies, or a loss of some part of the "original" principal (loan) balance, not the "principle" balance. One need only Google "define principle" and "define principal" to see the difference, and ANY time one is referring to anything to do with sums of money OR a loan balance, the word to be used is actually "principal" not "principle."

    Regardless, I still sincerely appreciate the effort you put forth in all your articles.

    Thanks Scott!

    - SkiDad13
    Jun 28 08:26 AM | 1 Like Like |Link to Comment
  • Prospect Capital Corp.'s Dividend And Net Asset Value Sustainability Analysis (Post Fiscal Q3 2014 Earnings) - Part 2 [View article]
    Hi Scott,

    Thanks, as always, for the time you take to do your in-depth analyses of various BDC's here on Seeking Alpha. Great job, much appreciated!

    Hoping not to be perceived as too picky here, and simply wanting to prevent the perpetuation of improperly used words -- think "complIment" versus "complEment" -- when referring to sums of money, the proper word is "principal" not "principle."

    It's a word that I sometimes I incorrectly use, so I double checked the definitions prior to posting this.

    Again, thanks for all you do for this investing community.

    SkiDad13

    Disclosure: VERY Long PSEC
    Jun 25 08:18 AM | 1 Like Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 2 [View article]
    Curious what your margin rate is?
    Thanks
    May 27 09:39 AM | Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 2 [View article]
    Norman,
    What is your "Dividend Investor's Guide" and where can it be found?
    Thanks!
    May 27 09:34 AM | Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 2 [View article]
    And BTW: to those that would comment on "total return" mattering, Yes, I whole-heartedly agree: total return DOES matter. However, for me personally, as a long-term investor, income matters more than total return. I can manage thru the overall portfolio valuation fluctuations on a day-to-day, week-to-week, and month-to-month basis as I have my portfolio set up for what I call "My Perpetual Money Machine."
    May 22 09:16 AM | 8 Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 2 [View article]
    Buzz and Koleff:

    I am personally and/or I control almost 21,000 shares of PSEC, so SA comments matter to me and I consider everyone's point of view carefully.

    That said, I believe BDC Buzz offers informative and insightful commentary that everyone -- long or not -- can benefit from. I believe that Buzz potentially COULD be proven correct in his concern about the ongoing problem of PSEC's ability to cover the dividend from current NII exclusive of the pool of Undistributed NII. If that situation continues unchecked, it will not bode well, likely resulting in one or more of the following: reduced dividend, lower share price, and lower NAV.

    The problem is that by the time the above issue becomes self-evident, it's always too late to react defensively before the share price gets a hair cut. That said, though, PSEC will likely still provide a healthy yield compared to the alternatives which will likely keep THIS PSEC shareholder long as I'm in it for the income.

    VERY Long PSEC
    May 22 09:10 AM | 7 Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 2 [View article]
    Buzz,

    To both of your responses above:

    The first: agree to both points.

    The second: understand and interesting points.

    Is it fair to deduce that PSEC just MAY, despite the recent quarter's back-loaded originations, be in a continual cycle of never quite being able to meet the current dividend using current NII -- exclusive of undistributed NII -- given the apparently ever-increasing costs of management fees, incentives paid, interest expense, etc.? If that's the case -- and I realize that seems to be part of your thesis above -- that's VERY alarming. In fact, if extrapolated a bit, almost seems like -- dare I say it: "Ponzi-scheme-like" -- in that they must continually grow the asset base thru increased originations, whether that be thru equity and/or debt issuance, and yet never manage to cover the current dividend with only current NII. That's a scenario sure to result in a future dividend cut, which in turn will surely result in a commensurate share price haircut.

    Your thoughts Buzz?
    May 21 10:10 AM | 3 Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 2 [View article]
    Hey Buzz,
    As always, thanks for the articles you write.
    Isn't it true, though, that a large portion of the last quarter's originations were made in the last few days of the quarter, and thus any income attendant thereto was not proportionately recognized in the quarter? That now for this quarter, those large recent originations will start making their contribution felt?
    May 21 09:32 AM | 8 Likes Like |Link to Comment
  • Prospect Capital Suffers A Flash Crash [View article]
    gawilley:

    Great point, but the problem is that one never has the opportunity (time) to get out before the damage is done; before the stock gaps down. And usually the gap down exceeds the value of one or more year's worth of dividend. The loss of principal almost always exceeds the gain in the dividend, for a net loss.

    Hopefully patience is rewarded with PSEC, but there seems to be a lot of "smoke" around this BDC lately and it makes one wonder . . . .

    VERY long PSEC
    May 14 11:37 AM | 3 Likes Like |Link to Comment
  • Energy Transfer Partners Should Rally Past $60 [View article]
    BAC219 and js1ralsyon: Thank you both for the info. Much appreciated!
    May 11 10:43 AM | Likes Like |Link to Comment
  • Avoid These 2 High-Yield Mortgage REITs [View article]
    When I invest in preferreds, I try to examine what is the ratio of income required to pay the dividends on the preferreds vs the common shares. I like to see at least a 1:10 ratio, if not smaller, as I feel that gives me a much greater likelihood that the preferred dividend can still get paid if the underlying company's income starts to falter and they have to lower or stop paying on the common.

    Based upon their most recent filing, current dividend rates, and stated shares outstanding, the 'A' preferreds require 1.956% of the total dividends paid, the 'B' shares require 4.839% of the total dividends, and the remainder (93.2%) go to the common shares. The company's income would have to drop dramatically before they would be forced to stop paying on the preferreds.

    That said, this analysis approach doesn't necessarily prevent the preferreds share price from falling as it has in the last 12 months, though it has rebounded significantly. However, I'm in it for the income and the long haul, and am not so concerned with principal appreciation nor price fluctuation, in general.

    Long: ARR.B
    May 7 09:51 AM | 1 Like Like |Link to Comment
  • Avoid These 2 High-Yield Mortgage REITs [View article]
    Hi Tucker,
    Are you specifically referring to the safety and time horizon of the dividends on the preferreds, that I own, or the common shares, which the article primarily references?
    May 7 09:40 AM | Likes Like |Link to Comment
  • Energy Transfer Partners Should Rally Past $60 [View article]
    Thanks for the head's up. Can they be dripped if held in a brokerage account? My shares are held with Wells Fargo Advisors.
    May 7 09:17 AM | Likes Like |Link to Comment
  • Energy Transfer Partners Should Rally Past $60 [View article]
    Interesting!! I was not aware that ETP shares could be bought at a 5% discount thru the DRIP.

    I also hold units of ARLP and SPH. I wonder if they offer similar discounted means to acquire additional shares?

    Thanks!

    P.S. Yes, great tax shelter, but PITA when it comes to tax season and the K-1's!!
    May 7 08:27 AM | 1 Like Like |Link to Comment
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94 Comments
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