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  • Prospect Capital: It's Time [View article]
    Without having delved deeply into this there are a few questions that come to mind immediately: 1. Why would you advocate a buy back of shares right now? Given S&P's action, wouldn't a stock buyback have the impact of adding more pressure on the rating by increasing debt to equity ratios? 2. Aren't all comparison of how big a discount price is to NAV out of date? Isn't the only NAV published right now one that's from June? Am I correct they only update NAV quarterly? What are the odds that NAV number is accurate today OR more importantly, improved since then?
    Sep 30, 2015. 04:21 PM | 5 Likes Like |Link to Comment
  • Single-Family Home REITs - The New Darling Of Wall Street? [View article]
    There seems to be one, maybe two, institutional sellers of AMHpB in the market right now... At first, the seller stopped out at 25.10, but it seems as though he couldn't get it all done at that price but still wants to exit the position for whatever reason.... Maybe he wants out by quarter's end, who knows.... In any event, I've seen this before on this one and it's always represented opportunity... I think for the most part, AMH preferreds seem to be retail products so when relative size is in the market to sell, it's tough to get it done. You can see this right now when comparing volume and price on AMHpB this week when compared to the almost identical AMHpA.
    Sep 24, 2015. 10:01 AM | Likes Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    Chris - I don't disagree, however, the risk that bothers me is not the potential call. I think that risk is baked in to the current price on the up side at slightly above par. My concern is the potential for buying a credit at a AAA price (NOT using rating quality actually applicable to ECCA itself for this example) when you fully expect it to rapidly become A quality. In other words, I wonder if it would be prudent to pay up for ECCA right now when there's a high likelihood of the spread differential to OXLCN or OXLCO to narrow when ECC is more likely to issue more preferred. Again, I have not done my work and am only expressing a gut feeling (or yet another excuse on my part to do what I seem to be best at actually doing which is nothing).
    Sep 14, 2015. 08:56 AM | 1 Like Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    I'm thinking you mean ECCA, not ECAA. As what I call a reluctant investor, ECCA has all the characteristics I'm looking for but I've been procrastinating for about 2 weeks now in doing my own DD..... As a stated maturity preferred with apparently much better coverage than OXLCO or OXLCN, it's a yield tradeoff I'd be willing to make, however, I can't help but think there's a possibility that the better coverage might very well stem from ECC being a younger company than OXLC that only has this one preferred outstanding because they haven't been around long enough to issue more..... It's just a gut feeling at this stage, with DD still undone, but I just have this suspicion that one could be getting in at too early a stage if buying now and more issuance of preferreds in the future could eventually degrade the credit quality.
    Sep 13, 2015. 09:34 AM | Likes Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    Is not ARU the same credit as AFC? If so, there is a more apples to apples comparison OXLCO vs ARU as ARU has a maturity of 10/2022. Conclusion's the same, though as ARU's yield is 5.875% and OXLCO is about 7.55%.
    Sep 12, 2015. 09:03 AM | Likes Like |Link to Comment
  • Gyrodyne Could Make For A Tasty Liquidation Play [View article]
    Richard - From what I know and what I've now received, you're essentially right, but, subject to some potential revision I think, the 0.025 for the Note is a rounded number for an actual that goes out something like 10 digits, so your actual speed may vary. Number's more like 0.0247.

    Plan is still to liquidate with projected dates unchanged.... I don't know if special divs will happen when individual parcels are sold, but my guess is we can look forward to a relatively quick announcement on the sale of at least one property at a price above the appraised value.... I'm guessing this by reading between the lines on some of the filings going into the vote last month...
    Sep 10, 2015. 02:38 PM | Likes Like |Link to Comment
  • Risks And Rewards Of Investing In CLO Equity Funds: A Case Study Analyzing 4 BDCs And CEFs [View article]
    Like most readers, I assume, your article is so much in depth we'll never be able to comprehend it all, but I sure do appreciate your effort and your thoroughness and have done my best to wade through it all.... Based on what I read, I would have guessed your first choice to replace your OXLC sale would have been ACSF, not PSEC with PSEC being a close second. It seems to me as though you consider ACSF to be the more conservative and transparent CLO equity investor. Incidentally, as an aside regarding your thoroughness, as I was reading through, I was itching to ask how you could say ACSF didn't pay out Principal Proceeds when it's required, but then you covered that question later in the article.... I was almost disappointed because I didn't get to ask.... Well done!
    Sep 10, 2015. 02:26 PM | 1 Like Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    Downtown, Though the characteristics and coverage you point out are what originally attracted me to OXLCN, shouldn't it be pointed out that most of the requirements you highlight are not specific to OXLC preferreds but are the results of OXLC being a company registered under the Investment Company Act of 1940? Many issuers of preferreds are subject to the same requirements, thankfully, and to me, the requirement is an under-appreciated covenant of these types of preferreds, even though they'd probably not help much in another breakdown of refinance markets such as in '08. I appreciate your stress testing example, though, of just how far the loan portfolio would have to drop for the 2x requirement to be tested.... I'll also point out that the BBB ratings you point out for PSEC and ARCC are not for preferreds but are at the corporate level, so referencing these ratings relative to the OXLC preferreds could be considered inadvertently misleading.... Apologies for the knit picking on your valuable post...
    Sep 10, 2015. 11:20 AM | Likes Like |Link to Comment
  • Gyrodyne Could Make For A Tasty Liquidation Play [View article]
    I know the feeling, Tom.... LOL! I knew I wanted to buy this one to see it through to liquidation because of teh upside possibilities involving Flowerfields, but I sure never anticipated it being THIS complex! At this stage, I really don't know if I can calculate with absolute accuracy exactly what I think I should receive in new GYRO shares once Ameritrade tells me what THEY think I'm supposed to receive, but I do know I am expecting inaccuracy......I think I've got a better idea than they do at this stage and that's not encouraging.... Speaking of college memories, am I the only one who has had a recurring dream something like finding out you skipped class so many times in a course that you actually forgot you were taking it and you now you've found out you have to pass the final in that class in order to graduate? GYRO may be that class.....
    Sep 4, 2015. 06:20 PM | Likes Like |Link to Comment
  • Gyrodyne Could Make For A Tasty Liquidation Play [View article]
    As per usual on this situation has created nothing more than added confusion at the retail broker level. I have the same problem with Ameritrade with nothing but confusing non-answers as to what to expect from them regarding timing......Regarding number of shares, what I do know is that if you have done no trading in and out of GYRO since the creation of the non-tradeable GSD entities and you participated in the rights issuance on a pro-rata basis only, you should end up with the same amount of shares of the NEW GYRO as you had of the old GYRO before the shares added by the rights issuance. Another way to say that is, OLD GYRO shares converted into NEW shares at .0904 new shares for each 1 old shares and that represented 22.6% of the new Gyrodyne LLC. Your shares of the GSD entities represent the remaining 77.4% so you can back into the total number of shares if only our publicly traders shares have been converted. All this assumes you have done nothing more than buy and hold.
    Sep 4, 2015. 08:55 AM | Likes Like |Link to Comment
  • Oxford Lane Capital Has 'Got Some Splainin' To Do' [View article]
    Ptr - I appreciate your taking the time to post such a relatively easy to understand explanation of CLOs and OXLC...... Based on your conclusions and decision to unload your OXLC common and preferred's, I'd be curious whether or not your decisions are OXLC based or CLO investor based? In other words, do you see structural differences in ECC that make them a viable investment even though you've abandoned OXLC?
    Aug 20, 2015. 03:35 PM | Likes Like |Link to Comment
  • Bakken Update: Answers To Why U.S. Oil Production Remains High While Prices Tank [View article]
    Thanks, everyone.... My take from your response, Michael, is the answer to the question really isn't black and white... Though you say higher production has more to do with what oil prices are at the time, you also say the operator plans its production accordingly and probably produces accordingly. So it sound as though the operators do produce based not only on the price at the time but the price he's locked in due to the hedge....
    Aug 10, 2015. 09:47 AM | Likes Like |Link to Comment
  • Bakken Update: Answers To Why U.S. Oil Production Remains High While Prices Tank [View article]
    I have a semi-related question that's based completely on my total ignorance. Does the act of hedging in of itself contribute to high production once oil prices tank? In other words, if a company has hedged their production at higher than market prices, are they obligated to produce in order to fulfill the terms of the hedge? For example, if a company has hedged 100 barrels at $90 per, somebody's paying for those barrels and from the company's point of view, they are producing to that price. Are they or anyone obligated to deliver the barrels or in a scenario where oil's at $45, is the profit and loss on the hedge all netted out on paper normally? My apologies if this is a stupid question but, without any experience, I've suspected the prominence of hedging strategies to be actually contributing to overproduction.
    Aug 9, 2015. 08:24 PM | 2 Likes Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    Any theories as to current market action on OXLC? Trading at 13.46 as I write. An opportunity or a forewarning? Chris - this has been your kind of action based on what I read.... Does the market action concern your long premise?
    Aug 6, 2015. 10:38 AM | Likes Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    Chris - I can sure relate to your stop and ponder statement. The situation with TVA bonds that I took advantage of was an ability to PUT the bonds back to TVA at par if/when they reset the coupon rate downward. Since the bond only resets downward, never upward, I think they must have provided the put capability as a sweetener to the original buyers. TVC reset downward on 4/29 and you had until 5/22 to decide to put the bonds back on 6/1 at $25 plus the then .239375 coupon. Oddly, beginning on May 19 the bond started dropping in price below par so you could capture the par amount plus 1% for a riskless hold period of less than 2 weeks or an annualized 26% yield. I jumped all over that immediately but the bond kept dropping before the cutoff date to a point where the available annualized return actually doubled from what I achieved. I left a ton on the table and went through that stop and ponder phase wondering whether I had somehow missed the ability to put. It worked out fine, but not without a major bout of personal second guessing.
    Jun 28, 2015. 10:10 AM | 1 Like Like |Link to Comment