Gordmans Stores: High Growth And A Fair Price [View article]
I am surprised that Sun has put up with a management team that consistently underperforms. Given the leases there is no way this can add enough debt to go private again so it seems like Sun's capital is trapped unless they boost operating margins to industry standards.
In a picked over market I keep trying and failing to gin up my enthusiasm for this.
The Market Doesn't Believe Huge Volatility In Gold And Silver Markets Will Last [View article]
Clearly the volatility of gold and silver contracts has been affected by the broad, liquidity induced decline in implied volatility across essentially all markets.
Although I am holding off on adding here the pattern of a low with high volatility followed by a marginal new low with still high but a little lower implied volatility is a classic bottom indicator. At this exact moment it doesn't look like it but odds are that the intermediate term bottom is in for gold based on implied volatility analysis.
Why Flanigan's Enterprises' Shares Are Significantly Undervalued Compared To Peers [View article]
Whoa there big fella you better take a look at that management team you are buying before getting overly excited. Plow through the proxies. It is hard work but you will find some interesting stuff.
In A Post Flash-Crash World, No One Should Use Trailing Stops [View article]
I personally agree with you and do not use stop loss orders EXCEPT in regard to trailing stops, which is the process of gradually raising your stop loss order behind a security that is rising in price but which you are trying to sell because it is overvalued or you are anticipating a trend change or whatever. I think trailing stops by definition are used only for securities you are actually TRYING to sell, but at the best possible price, unlike the situation you describe in your article, where you presumably are long and prefer to stay that way.
Thanks again for your work, which is always thought provoking.
In A Post Flash-Crash World, No One Should Use Trailing Stops [View article]
Disagree with the headline but completely agree with the piece. Paging editorial . . . corrected headline should eliminate the reference to "trailing" stops, which the author never discusses.
ETPs Turn To Selling Options To Generate Income [View article]
satan, unless you are trying to move $200k+ at a time (in which case I have no idea) there is sufficient liquidity in HVPW around NAV, just place a limit order near the price you are willing to pay and shares will be created for you
at least that has been my experience trading GLDI in $50-100k blocks
Is Volkswagen The Buy Of The Automobile Sector For The Value-Oriented, Dividend Investor? [View article]
1great, are those the EV/EBITDA ratios (the numbers are higher than I would have guessed, even with pension liabilities fully included) . . . sorry to be needy but I see VLKAY written up alot on value boards and am trying to decide whether it is worth working on . . . thanks!
Is Volkswagen The Buy Of The Automobile Sector For The Value-Oriented, Dividend Investor? [View article]
Personally I would have appreciated some attention to the balance sheet, esp. with regard to comps. These auto companies have wilding diverging capital structures and so I think an EV/EBITDA type analysis would have been helpful.
Some discussion of their cost structure relative to competitors would have been good, too.
Why Lower Yielding PennantPark Floating Rate Capital Could Be The BDC For You [View article]
Ask and ye shall receive:
From the most recent proxy (the last sentence is the most important and what distinguishes PFLT from other BDCs):
The Credit Facility, as amended, contains covenants including but not limited to restrictions of loan size, industry requirements, average life of loans, geographic and individual portfolio concentrations, minimum portfolio yield and loan payment frequency. Additionally, the Credit Facility requires the maintenance of a minimum equity investment in Funding I and income ratio as well as restrictions on certain payments and issuance of debt. For instance, we must maintain at least $25 million in equity and must maintain an interest coverage ratio of at least 125%. The Credit Facility compliance reporting is prepared on a basis of accounting other than U.S. GAAP (for example, fair value, as defined under ASC 820, is not required to be used for assets or liabilities for such compliance reporting).
Here is a link to the complete credit agreement. The portion you need to review is "definitions" and "collateral calculation".
Here is a link to the PNNT/PFLT investor presentation which explains the philosophy of matching the duration of the credit facility to the duration of the investments. It also states that the credit facility uses historical cost, not mark to market, for compliance purposes.
You are quite correct that they should still be seeking an SBA facility along the lines of that obtained by PNNT as a way to diversify their sources of funds. Obviously even if they didn't trip a debt to value covenant they could, for example, trip an interest coverage covenant. And you are also quite right to be skeptical of anything posted on a message board!
Why Lower Yielding PennantPark Floating Rate Capital Could Be The BDC For You [View article]
What about the more important point that they don't have to mark their book to market so their risk of blowing a covenant a la 2008-09 is greatly reduced? I suggest you go back to the early SEC filings for PFLT where Art Penn talks about his desire to build a firm that would be structured so that one to one leverage could be achieved with less risk than the typical BDC. I believe PFLT remains unique in that regard.
Regarding the duration of the credit facility, because it matches the typical PFLT loan changes in interest rates or credit risks will affect both simultaneously. Wish I could explain it more clearly but pressed for time.
BTW, it would for sure be great if they could get an SBIC facility, no doubt, and they have talked about it on previous calls.
IPO Preview: Alcobra Pharmaceuticals [View article]
Gordmans Stores: High Growth And A Fair Price [View article]
In a picked over market I keep trying and failing to gin up my enthusiasm for this.
IPO Preview: Marketo [View article]
The Market Doesn't Believe Huge Volatility In Gold And Silver Markets Will Last [View article]
Although I am holding off on adding here the pattern of a low with high volatility followed by a marginal new low with still high but a little lower implied volatility is a classic bottom indicator. At this exact moment it doesn't look like it but odds are that the intermediate term bottom is in for gold based on implied volatility analysis.
Why Flanigan's Enterprises' Shares Are Significantly Undervalued Compared To Peers [View article]
They ARE improving operationally, however.
In A Post Flash-Crash World, No One Should Use Trailing Stops [View article]
Thanks again for your work, which is always thought provoking.
In A Post Flash-Crash World, No One Should Use Trailing Stops [View article]
IPO Preview: Tableau Software [View article]
ETPs Turn To Selling Options To Generate Income [View article]
at least that has been my experience trading GLDI in $50-100k blocks
Is Volkswagen The Buy Of The Automobile Sector For The Value-Oriented, Dividend Investor? [View article]
Is Volkswagen The Buy Of The Automobile Sector For The Value-Oriented, Dividend Investor? [View article]
Some discussion of their cost structure relative to competitors would have been good, too.
Why Lower Yielding PennantPark Floating Rate Capital Could Be The BDC For You [View article]
Why Lower Yielding PennantPark Floating Rate Capital Could Be The BDC For You [View article]
From the most recent proxy (the last sentence is the most important and what distinguishes PFLT from other BDCs):
The Credit Facility, as amended, contains covenants including but not limited to restrictions of loan size, industry requirements, average life of loans, geographic and individual portfolio concentrations, minimum portfolio yield and loan payment frequency. Additionally, the Credit Facility requires the maintenance of a minimum equity investment in Funding I and income ratio as well as restrictions on certain payments and issuance of debt. For instance, we must maintain at least $25 million in equity and must maintain an interest coverage ratio of at least 125%. The Credit Facility compliance reporting is prepared on a basis of accounting other than U.S. GAAP (for example, fair value, as defined under ASC 820, is not required to be used for assets or liabilities for such compliance reporting).
Here is a link to the complete credit agreement. The portion you need to review is "definitions" and "collateral calculation".
http://1.usa.gov/14qmBGQ
Here is a link to the PNNT/PFLT investor presentation which explains the philosophy of matching the duration of the credit facility to the duration of the investments. It also states that the credit facility uses historical cost, not mark to market, for compliance purposes.
http://bit.ly/13ycKQs
You are quite correct that they should still be seeking an SBA facility along the lines of that obtained by PNNT as a way to diversify their sources of funds. Obviously even if they didn't trip a debt to value covenant they could, for example, trip an interest coverage covenant. And you are also quite right to be skeptical of anything posted on a message board!
Why Lower Yielding PennantPark Floating Rate Capital Could Be The BDC For You [View article]
Why Lower Yielding PennantPark Floating Rate Capital Could Be The BDC For You [View article]
Regarding the duration of the credit facility, because it matches the typical PFLT loan changes in interest rates or credit risks will affect both simultaneously. Wish I could explain it more clearly but pressed for time.
BTW, it would for sure be great if they could get an SBIC facility, no doubt, and they have talked about it on previous calls.