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  • Renewed Share Buying, Attractive Valuations Put Prospect Capital Back In Focus [View article]
    Past performance is not an indicator of future results, however; some people do look at where a company has been and how they shaped in comparison to major indices and their competition/peers. We also know, once again, things can change.

    I'm hanging in there quite long. A distribution of 11% (at my cost basis) is nothing to sneeze at. My confidence in the long-term is high enough that I drip more shares rather than take the distribution and go elsewhere with it. These current monthly shares should show capital gains down the road in addition to the distribution they will produce on a monthly basis. Rose-colored glasses? Maybe, but that's the risk we take with any stock. Over the course of time, I plan on being rewarded for this risk.
    Nov 22, 2014. 10:39 AM | Likes Like |Link to Comment
  • Renewed Share Buying, Attractive Valuations Put Prospect Capital Back In Focus [View article]
    I agree. Massive is not the most appropriate term. As a percentage of what these people have already in share ownership, it contradicts the term massive. These people CAN afford the risk. It would be a different picture if they weren't earning anything on the shares but that's not the case. Their "investment" in the business in the form of purchasing shares is somewhat miniscule, in my mind.

    I would rather see them reduce their compensation as "outsiders" of the business and see that money go toward covering the distribution. They are making good income from a number of angles all while our principal investment heads south. Yes, we are well aware of the risk/reward equation, but what's wrong with getting a distribution and satisfying the market in a way that we don't see these sizeable drops in share price? There is a reason why they don't continue to hold the confidence of the market.

    I think that even though the argument about how they measure their distribution against NII or TI goes on, it is a fact that the NII and NAV have decreased and I see these as primary reasons for losing some umphhh in the market share price.

    I am very long with Prospect and certainly (holding my breath) I don't plan on selling at a loss. I am chalking the latest drop in price as a phenomenon that many (good) companies go through at times. It always seems that the market is much quicker to jump (off) the ship than board it...
    Nov 22, 2014. 10:34 AM | 1 Like Like |Link to Comment
  • Renewed Share Buying, Attractive Valuations Put Prospect Capital Back In Focus [View article]
    It doesn't matter who is buying the new shares under the NAV --- the fact is that they're out there for the taking and they are being taken as they are issued. I just wonder how many times new shares can be sold under book and not have a longer-term adverse effect on how the market sees this.

    Selling news shares under book is nothing new but as a way of continually doing business? Can someone shed some light on this issue? Certainly, IF Prospect can take this cash and put it to use whereby it makes more money than what is paid in the form of a distribution, then it can be seen as one of the means of operating a business and part of a business model. The only way I want to see it is that it generates cash that they can go out and earn a premium on that solidifies future distributions.

    Opinions, insight ?
    Nov 22, 2014. 10:25 AM | 1 Like Like |Link to Comment
  • Why I Think Sirius XM Is Still A Good Bet [View article]
    I've done two nice buy-and-sells with siri over the last five years. I dipped in very lightly this third time, probably with a sizeable reservation about getting any sizeable return. I don't know what they can do at this stage that will tell the market that they're worth a markedly higher price for their shares.

    I guess I just have to wait and see what the market says. $4.25 would be a good exit price for me but right now, that price seems a bit lofty based on what's been happening (or not happening). Subscription growth can go only so far when considering the size of their customer base already (as a percentage). I just didn't have the patience to go deeper. I like seeing those dividends coming in each month which I would have had to compromise in order to go deep with siri again. To me, it wasn't worth the sacrifice.

    Anyway, siri IS a good company from a product standpoint --- from a current investment standpoint, hmmmmm???
    Nov 21, 2014. 05:54 PM | 1 Like Like |Link to Comment
  • Prospect Capital: Two Reasons Why Prospect Capital Is A Strong Buy Below $10 [View article]
    Where did the votes come in majority to allow for more shares to be issued below NAV? What do the yay voters know that the nay voters don't? And how much did the vote pass by?

    This obviously has been a practice in recent past but how long can one continue to issue new shares under the book value of the business without something adverse happening?

    Can someone answer these questions for me or at least render an educated opinion?
    Nov 21, 2014. 05:34 PM | Likes Like |Link to Comment
  • Prospect Capital: Insiders Are Loading Up The 'Prospect Truck', And So Should You [View article]
    I probably would be dumping my shares if it weren't for having purchased them when Prospect was held in higher regard by the market. With this said, I grit my teeth, console myself with drip shares at a lower price than my original principal purchases, and feel a bit of hostage dissonance.

    All of this doesn't make me feel all that good so I just eat more ice cream to bring my spirits up. Prospect is directly responsible for my ice cream expenditures doubling. smh atw (smacking my head ---------- against the wall)
    Nov 21, 2014. 05:18 PM | 2 Likes Like |Link to Comment
  • Prospect Capital And BDC Expenses [View article]
    RonFrank ---

    Pretty much my assessment of investment forums overall. There's no doubt that investors can be and are influenced by what they read in these forums and sometimes, quite influenced as to what they do from an investment standpoint, me included.

    No one likes to hear non-positive news or assessments/opinions about a stock they own but it's part of life. I am way, way behind on my cost basis with Prospect, and in a way, feel a bit "stuck". I can "cut my losses" and make the losses real or I continue to hold and see if these paper losses change course and become paper gains in the future. I still read this forum knowing that, with how things have been going for and with Prospect, hear things that pain me.

    We. as investors, learn very quickly that if we are going to read the input from others, we need to be prepared to separate the wheat from the chaff. Aaaaand, we must also be willing to see that the non-positive information is indeed wheat. It's painful, but we know that sooner or later, each investor will experience pain --- even the best of the best investors don't go unscathed.

    Emotions can run high, these investments may be our lifeblood, which really allows emotions to run high. We all react differently to what is being stated, and with that said, some investors or even some bystanders cross the line as to how they react or respond to something they don't want to hear or they disagree with. This won't change --- ever. I'm just glad that most people, at least on SA, keep a cool tool and allow this forum to be a place where one can read and digest its content without leaving with indigestion solely due to how the participants behave. It's tough enough leaving with indigestion due to having to deal with the facts...


    Long PSEC and holding
    Nov 19, 2014. 09:13 AM | 2 Likes Like |Link to Comment
  • Prospect Capital management and investors go back and forth on earnings call [View news story]
    It's going to be a "while" before we see eleven bucks again. There's always going to be something to keep it down, whether it be poor numbers or management behaving in a manner that keeps investor confidence at bay. I hate to say it this way or even think this way without verbalizing it but my enthusiasm for this management team is waning.

    But I refuse to take a sizeable hit by giving some opportunist my shares. Prospect owes its longer-term shareholders some beef back on the bone, and that's only going to happen if they start showing the numbers that solidify the current distribution and gain market trust back. Sure, it's one thing not to trust them and not buy --- it's another thing not to trust them and be holding the bag.

    Right now there's a lot of "bag-holders", including myself. I'm not complaining, just stating fact. If this new spin-off strategy is legit, then the current shareholders should benefit by it. We certainly know that they will have "hedged" their personal profits in it whereby no matter what happens, the activity alone will generate more income for their personal portfolios. It's a win-win for them. They need to show what's in it for us --- the people that put all the money up for them to operate and make personal gain off from us.

    First, solidify that distribution, secondly get the market enthusiastically back in the game and show it through a healthy share price --- not a welfare price that is constantly being threatened to go lower. And thirdly, find a way to run this business without diluting our shares with more share issuances, and below NAV to boot.

    I'm patient --- very patient, in fact. But that doesn't mean I can't be pissed. And don't call me (again) and ask me for permission to sell up to 25% of the value of the business in the form of new shares a mile away from the price I paid. You are ringing the wrong phone for that, Mabel.

    Now --- get to work, make things work, and make sure you pay me for what I signed up for and invested in. Show me the money --- I showed you mine.
    Nov 10, 2014. 03:48 PM | 4 Likes Like |Link to Comment
  • Assessing Prospect Capital's Results For Fiscal Q1 2015 [View article]
    Thanks, Scott --- as always, a fine job sorting things out.

    One thing that was mentioned but I don't know if it were in the same timeline as what I recently experienced, there was mention of offering new shares under NAV. I don't think that this settles well with current shareholders but it has been a practice of Prospect in the past also.

    With this said and to expand on my preface above, I was contacted by Prospect (or an agent for) regarding an upcoming shareholder vote which was going to address two things: a vote for a new board member whose name I forgot AND the issuing of additional shares below NAV again. This is up for shareholder vote and the discussion I held with an individual on the phone was just ten days ago, so I don't know if the timing of the share issuance was a result of the vote OR there are more issuances on the table for the near future. Anyway, they need to keep this issuing of new shares below NAV to a great minimum.

    In fact, ANY new issuing of shares at this point only seems to exacerbate the situation that current shareholders are in. We have lost cost basis, there is talk about a distribution reduction, and now more shares into the market (below NAV!) that compound our dilution concerns.

    These people are starting to get under my skin. They're already gotten under my investment. I hope that somewhere along the line, I can look back in retrospect and say that this investment was all worth it. Right now, even with the "robust" dividend, I'm not the happiest of campers. I can only hope that all this "volatility" from within is ironed out and that I don't regret in the long-term making this sizeable investment.

    There. I'm done. Thanks, and good wishes to all of those, including me, who bought in when the market thought that this stock was worthy of eleven bucks...

    Nov 10, 2014. 11:23 AM | 4 Likes Like |Link to Comment
  • Prospect Capital: Is A Dividend Cut On The Way? [View article]
    Bottom line is that Prospect has to perform in a way that supports the dividend payment (forget the percentage to share price for sake of discussion). If their (taxable) income does not meet the dividend being paid out, they would have to resort to residual monies being held. That "formula" does not go on for ever (or for even a longer term). Rainy day money runs out when it steadily keeps raining...

    With this said, it's basically earnings in --- dividends out. If the equation is breached, then there are very few alternatives -- very, very few. With a (potential) dividend cut comes a share price reduction --- the market gets the hickory switch out and we go out behind the shed for a lashing.

    I, personally, am not a buy-and-sell type investor at this point in my life --- I look for the high-payers (with understood risk, obviously) that will finance my long-term (and probably forever) unemployment situation. For me, these next two years prior to being able to grab social security at age 62 (yes --- I am grabbing it as soon as it's available !), I am on thinner-than-desired financial ice but that's what not having a job does to just about everyone.

    So, I look for Prospect to do everything they can to earn, then pay out a monthly dividend payment in line with the current distribution payment at 11 cents. IF they have to reduce this due to reduced earnings, then that's the way it goes, as painful as it may be, but it must be done if it must be done. Money doesn't grow on trees --- it's really true, and certainly, we don't want to borrow money or sell more shares for the sake of maintaining a distribution ---- talk about an atomic bomb! ....

    Going forward, just like any other company, Prospect has to figure out and operate in a way that keeps that distribution up there in value. Maybe this "spin-off" strategy will benefit the shareholder --- maybe it won't. But I know one thing --- I am not prepared to give someone else my hard-earned shares and take a sizeable loss. I'm stubborn like that and certainly it can work to one's (and my) demise, but I tend to battle through the lows and show patience in the attempt to get back to ground-level. It usually works over time. In the meantime, give me the cheaper shares each month --- it's the one thing that can help ever-so-slightly mitigate the gray sky that is covering that sun in the background...

    Nov 10, 2014. 09:22 AM | 10 Likes Like |Link to Comment
  • Prospect Capital management and investors go back and forth on earnings call [View news story]
    Maaaaan, oh maaaaan, it almost appeared to be a bit of a dog-and-pony show. "I'll throw this up on the screen, I'll give you some verbage with it, then you believe what I tell you, even though I really can't tell you --- just trust me..."

    I am very long with Prospect, thinking that they know what they're doing and trust that they manage the business in a way that secures the distribution --- that's all I want. Price appreciation (hah!) would certainly have been only seen as frosting on the proverbial cake --- it's a secure and stable distribution that myself and others look for.

    Well, we're in a position that allows us to do one of two things: Get out (for me, at a sizeable loss) or hang in there and have "faith" that they know what they're doing and execute effectively so as to solidify that distribution. If they do this month in and month out, they show more money coming in than going out, then I'm not so concerned about being grossly behind on my cost basis.

    I bought in for long-term income generation through the distribution. "Breaking even" on a cost basis would be fine with me. An uphill climb that very well can happen over the longer-term.

    Long and long-term Prospect.
    Nov 7, 2014. 03:12 PM | 3 Likes Like |Link to Comment
  • Update: Linn Energy's Earnings Show The Partnership Is Benefiting From The Change In Strategy [View article]
    Richmondinvestor, I am pretty much in the same boat as you, sitting on thousands upon thousands of shares (at a grossly higher cost basis, I should add). I went into this large investment with a monthly distribution in mind, and the "vision" of seeing the share price stay somewhat close to my cost basis. That has not happened, obviously.

    The only thing I feel I can do is to sit tight, and keep reminding myself that I made the decision to invest in the energy market, and just as importantly, invest in the management team to make decisions that will secure its distribution (and run the business in a way that they market sees this entity as being a sound investment). Over the course of recent days, the market is saying that it is not the investment it was a year or two years ago.

    Most of this price free fall has been the result of oil prices and of a few analyst firms downgrading their assessment of Linn. (But yet there are other firms that somewhat contradict them.)

    All I know is that I feel that I have to hold firm --- I refuse to take a gigantic loss and I might as well just drip along and grab monthly shares at these reduced prices.

    I still feel that Linn is on solid ground, (once again) following their business model by combining price hedging with acquiring slow-decline assets. The business model is a good one and looking long-term, this carnage (on paper) should rectify itself.

    As an investor, it's not an enviable position to be in but these are the cards that are presently in-hand. Play them as one sees fit. I'll hold and stick to my long-term plan and "vision" that Linn will continue on with a hefty dividend that will be secured by making wise decisions and investments.

    Nov 7, 2014. 09:21 AM | 8 Likes Like |Link to Comment
  • Linn Energy beats by $0.12 [View news story]
    It at least appears that the Saudis are putting a competitive front on our internal oil production by playing a price game. They certainly aren't doing it so we Americans have an easier time paying for oil and oil products.

    Do they feel a sting from our own production? I certainly don't know but we know one thing --- whatever they state their reason is for their pricing, there's more to the story than that.

    Everything that Linn has been doing for the last six months or so all appear to be helping to solidify their current distribution. I have no problem with them not increasing it and taking earnings and putting them where they feel they would do best in the long-term. On the short-term side, things seem to be stabilized ---- it's almost always the long-term that can come back to get ya...
    Nov 4, 2014. 09:08 AM | 2 Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 6 [View article]
    I'm pretty much on the same page as you, Chuck. You probably aren't as long as me which makes it more uncomfortable for me than you. I didn't plan on (and certainly don't now!) selling my shares for I went into this commitment for a robust yield.

    Whatever they need to do to stabilize their position in the market is ok with me. I am not all that happy with their fees and compensation --- they will all weather this storm better than the average Joe retail-buyer like us. I wish I could feel at least a bit better about this situation but I'm going to bear whatever pain comes along and look for better days down the road. In the meantime, I'll take the new shares each month at this discounted price and let them fall onto the pile that I own at a much higher price.

    Being in this for the long, long haul, if they can continue to pay close to what they're paying now, I guess I'll be ok but sometime down the road a ways, I hope to see the share value return just for the sake of feeling better even though my plans in the near future were not for selling anyway...

    Oct 20, 2014. 10:41 AM | 3 Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 6 [View article]
    It sounds simple and contrite, but time will tell. I am very long and deep with Prospect and at this time would take a beating if I got out. With that said, I feel compelled to painfully see this mess out to and through the end whereby hopefully, they regain a good position and their share price returns to the low-11 share value.

    In the meantime, I am going to hold fast, keep dripping with the reduced share price buys each month, and hope that they come out of this funk in a year to two. It will be painful, but once again, I just can't get myself to push the button and take a huge loss. Do I feel "trapped"? Yes, in a way, I do but I do feel that they can manage the business over the next two years or so whereby the stock warrants an $11 price.

    Not a good situation, however; it is what it is. Is there anyone else that finds themselves in this unenviable position ???
    Oct 20, 2014. 10:33 AM | 10 Likes Like |Link to Comment