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Polishqueue

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  • Prospect Capital Corp.'s Dividend And Net Asset Value Sustainability Analysis (Post Fiscal Q3 2014 Earnings) - Part 1 [View article]
    Assuming you've spent at least three to five hours MINIMUM gathering and exhaustively examining all this data, one can only conclude that you are either (1) obsessed with PSEC, and especially with potential problems with investing in it, or (2) receiving adequate compensation to make all this worth your while. A penny per page-view doesn't work out to be very much, and I doubt that SA is your major sponsor here. Bottom line: Of course you're right; your observations would be valid for just about any company worth investing in. But so what? PSEC has never claimed to be the only position one ever needs in one's portfolio, but it's a d@#med good company, run by folks who know what they're doing and are making a good profit doing it. I get tired of reading about how some fine companies (PSEC being one of them) are somehow comparable to the Ponzi outfits portrayed on American Greed. Those are truly scams, offered "under the table" to gullible investors, for whom I can only feel sorrow and pity for their ignorance. They exist by selling shares and using the funds to repay those few investors who have the sense to bail. The point is that the company makes its money by selling shares.

    That's really not what PSEC does, now, is it?

    I don't know about you, but my stake in PSEC is entirely second-hand. So is that of most of us. Anyone here holding a lot of IPO shares? Uh, huh. Didn't think so. PSEC doesn't make a dime out of what we pay each other to trade these shares. It makes its money by doing what it does. The BUSINESS. And it makes a lot of money for the management of that business by making sound business decisions, one of which was to become listed as a BDC so that it can get the tax breaks that make it profitable. Are there costs for such an advantage? Of course there are; they have to pay out nearly all of their profits to investors. Which means that if John Barry et al want to make a lot of money, they have to let ME make a lot of money, too.

    Is there really anyone here who has a problem with that?
    Jun 16, 2014. 04:48 PM | 14 Likes Like |Link to Comment
  • Swept up in the hit to American Capital Agency (AGNC -8.3% AH) is its sister firm American Capital Mortgage (MTGE -5.4% AH). MTGE differs from AGNC in that it invests in non-agency MBS as well as agency paper, but both share Gary Kain as CIO. AGNC's conference call is set for Friday at 11 ET - how much did February's dilutive secondary hit the Q1 numbers? [View news story]
    Well, it looks like my $25 June covered call sales are less likely to be excersized, which is fine by me ($25/share is my 20% gain target). OTOH, if it were to drop back below twenty bucks I'd be buyin' me up as much of it as I could. Is there anyone out there who thinks MTGE will ever sell for $19.90 again? Yeah, me neither.
    May 3, 2013. 11:41 AM | Likes Like |Link to Comment
  • Swept up in the hit to American Capital Agency (AGNC -8.3% AH) is its sister firm American Capital Mortgage (MTGE -5.4% AH). MTGE differs from AGNC in that it invests in non-agency MBS as well as agency paper, but both share Gary Kain as CIO. AGNC's conference call is set for Friday at 11 ET - how much did February's dilutive secondary hit the Q1 numbers? [View news story]
    I agree with you that it might.
    And if it does, I will happily buy your shares.
    May 2, 2013. 10:28 PM | 2 Likes Like |Link to Comment
  • Prospect Capital (PSEC +2.5%) bumps its monthly distribution by 8.2% to $0.11/share, representing an annualized dividend yield of 12.8% (PR[View news story]
    Saratogahawk, you couldn't have said it better. And if the continuation of the current adminstration can actually get some of the cooperation that was so wantonly denied them the past four years, there will be a HUGE upsurge of the same small business activity that make up PSEC's core market. I see good times ahead for PSEC; maybe not so good for large investment banks.
    Dec 7, 2012. 05:45 PM | 3 Likes Like |Link to Comment
  • All grown up and no place to go? Cantor Fitzgerald's Robert LaFleur weighs in the maturing gaming sector with the strong view the oft-discussed REIT play pulled out by Penn National Gaming won't be the go-to move of peers. The analyst expects the industry to see slower growth and increased buyback/dividend activity, while the hyper-growth dreams on Asia fade into a different phase. [View news story]
    I agree with both of my two co-commenters' here, but I also find it simply amazing that NONE of the "professional" commentators seem to have noticed that OTHER important "message from the voters" that occurred in November... at least those in Washington and Colorado.

    Both of these states passed constitutional amendments making them the only places on earth (not just the U.S.) where possession of recreational quantities of what is otherwise a banned substance will become legal on January 1st. Just what do you imagine is going to happen to the ski resorts and casino industry there, when the tourist season goes from a few weeks in the mountain ski areas to year-round everywhere! Not to mention pizza shops. Many sectors of visitor-driven commerce are going to turn into gold mines, and I'm talking about wealthy, international visitors who will be able to safely indulge in what might be far too risky anywhere else. Why would they go to spend their money in Vegas, or Macau. I believe Penn National already knows this. Boyd and Vail, too. Probably LVS as well, though no one's talking about it. Yet. Come to think of it, maybe Domino's and Papa John's, too. Remember, delivery pizza doesn't require anyone to drive anywhere -- a big plus when (1) you can't, and (2) you mustn't. Oh, and (3) you've GOT to have a pizza and RIGHT NOW. Maybe 2.
    Nov 29, 2012. 10:08 AM | 1 Like Like |Link to Comment
  • Panic-selling in income producers (I, II) infected the BDC's as well, notably Main Street (MAIN) and Triangle (TCAP), both down more than 10%. Fed meddling seemingly can't hurt their returns, but most names in the popular sector trade well above their net asset values (MAIN is 57% above Sept. 30 NAV after today's decline, TCAP 47%), making them vulnerable to a change in sentiment even if business is doing fine. [View news story]
    The fiscal cliff is real... sort of.

    The solution will include maintaining tax cuts for the under-$250,000 crowd (which includes me and the rest of the "47%"), but the richies will likely make us suffer by selling off a lot of their equities...

    ...Which they should. After all, none of us really want to "stick it to" those who have been successful; we just want them to contribute a larger share in support of Americans who are less fortunate.
    So how does that affect PSEC and others like it?
    It means bad news for banks. Especially banks that are publicly traded and lend mostly to large, publicly-held businesses. That's the argument presented by those who agree with Ryan, Trump, et al. It's a good argument and I believe that will, indeed, be the result, and that investors in such institutions will suffer, at least in the short term.
    For lenders whose customers are mostly private businesses, the REAL American Small Business Owner for whom economic recovery is targeted, the so-called "fiscal cliff" is not only irrelevant, it's likely to be a boon.
    Prospect Capital has, probably, the best d@#m management of anything out there in this particular field. The trade-value of its stock is quite volatile because most investors don't understand how companies like this operate. PSEC stands to make money hand over fist as the federal government begins to increase its attention on developing new, small business, and it's their PROFIT that provides our dividends. Who (except day-traders, who should avoid PSEC at all costs) cares what the current stock price is, other than to pick up more when it's "on sale"?
    Nov 15, 2012. 04:17 PM | 1 Like Like |Link to Comment
  • Prospect Capital (PSEC): FQ1 Net investment income/share of $0.46 beats by $0.02. Net asset value of $10.88, up $0.05 from Q2. (PR[View news story]
    I own this for dividend, of course, but it's nice that the NAV is higher than what I paid for the stock.
    Nov 10, 2012. 03:21 AM | Likes Like |Link to Comment
  • Prospect Capital's Dividend: A Safe Haven From Any Storm [View article]
    Actually PSEC stock tends to drop significantly lower than just ten cents (remember, the dividends are issued monthly) for a few days afterward, and you can often pick up shares 30 to 60 cents below their pre-divvy value. For those with quick trigger fingers, that means you can actually GET the dividend, absorb the mandatory $.10 drop, and STILL make a profit before it finishes dipping. Then buy more and continue the cycle (with more stock) next month. BINGO!!

    Sometimes that doesn't work out, but more often it does. I've done very well with PSEC for a long time.
    Oct 29, 2012. 01:12 PM | 1 Like Like |Link to Comment
  • "Rates go down you get killed, rates go up you get killed," says hedge fund manager Brad Golding, summing up the situation for mortgage REITs. The days of double-digit yields are over - at least at Annaly (NLY) - where new co-CEO Wellington Denahan-Norris calls it "fantasy" to think the company can just jack up leverage to replicate the returns of the past. [View news story]
    This quote intrigues me: according to Cheryl Pate and Vincent Caintic, they expect "... a 4 percent dividend cut for REITs that buy agency debt in 2013 and a 15 percent increase for the so-called hybrids that purchase both types. These will benefit from higher asset prices for non-agency debt and quicker prepayments on debt bought below par."

    As a holder of American Capital Mortgage (MTGE), I appear to be a beneficiary of the good fortune predicted for hybrids. Goody! Goody! Can someone give me a better idea of why this should be so, thereby providing a reason not to dump this stock in favor of, say, PSEC?
    Oct 16, 2012. 05:06 PM | Likes Like |Link to Comment
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