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  • Kinder Morgan, Inc.: Clearance Sale, Just $24...Seriously Consider This Dividend Gold Nugget [View article]
    Make no mistake KMI's preferred issuance is compromising the capital of all shareholders. It is akin to the E&P MLPs foolishly issuing convertibles to purchase more assets that have not only lost land value the PV calculations on future cash flows from exploration have created a huge dislocation between long term cost of issuance of preferred shares and asset value. E&P MLPs have cratered. While KMI has not cratered better to choose smaller more nimble GPs than KMI which is considering even more compromise to their equity structure.
    Nov 22, 2015. 02:48 PM | 1 Like Like |Link to Comment
  • 5 Reasons To Love Prospect Capital [View article]
    I suppose its OK to dream the impossible dream. There is no way on this earth that PSEC will sell at a 7% yield.
    Nov 22, 2015. 12:44 PM | 12 Likes Like |Link to Comment
  • Prospect Capital: Repurchase Shares? Oh Look, An Apartment Building [View article]
    Sorry but the supposed equity reit spinoff would be a mish-mash of real estate assets not attractive to shareholders. When GOV was spun off there were the same high expectations for GOV which now trades at a 10% yield. I think the real issue is PSEC must buy in more and more and more shares until potential shareholders see value. At this point, value is not believed. You only have to look at MCC which trades at a deep discount and has not (yet?) cut its dividend but the belief the dividend must be cut is the hangover at MCC.

    PSEC just lost $0.30 of nav in the blink of an eye over valuation of its CLOs. CLOs have become a significant part of PSEC's ability to pay out its very high dividend. To investors who were burned in BDCs in 2008/09 are opting for better and best of breed BDCs that do not invest in 3-letter acronym investments that may turn out to be POS investments.

    Mreits keep falling and several have significant discounts to their NAV and as quarterly reports come out there is a never-ending deterioration of nav because we are in a changed world and the specter of higher interest rates looms and valuations are reflecting the beginnings of a higher interest rate world to come.
    Nov 13, 2015. 07:15 AM | 9 Likes Like |Link to Comment
  • Prospect Capital: What More Will It Take? [View article]
    Chris, you were wrong abouit Mreits. You are wrong about PSEC. Look at MCC's discount to NAV and MCC has (to date) maintained their dividend. So if MCC maintains dividend and sells at similar discount to PSEC which did cut their dividend.... why doesn't it make sense that both are worst of breed having lost investors preferring best of breed?
    Nov 12, 2015. 03:20 PM | 3 Likes Like |Link to Comment
  • Prospect Capital's Results For Fiscal Q1 2016 - My Assessment [View article]
    ACAS is no longer a BDC but if it returns to BDC status investors must remember that a large amount of their NAV has been accumulated NII since dividend elimination since 11/08. I am not impressed that PSEC can accumulate some NII in reserve since the SECOND dividend cut when you have best of breed BDCs with large pockets of accumulated NII and not even close to having to cut their dividends as they are comfortably earning NII in excess of dividends.

    Amazing how much SA time is given to writing about a worst of breed BDC. Perhaps investors would be better served if more time were put into writing about best of breed BDCs.
    Nov 11, 2015. 08:36 AM | 1 Like Like |Link to Comment
  • Keystone killing adds to cloudy outlook for pipeline companies [View news story]
    Absolute nonsense! Pipelines within US being built out without this kind of political wind occurring. East coast residents are tired of paying so much for fuels because they are underserved in terms of pipeline build out.
    Nov 8, 2015. 11:55 AM | 2 Likes Like |Link to Comment
  • High-Dividend Stock Yields 11%, Has Strong Upside Potential, Goes Ex-Dividend This Week [View article]
    Remember when everyone was talking about Hi-crush and the never ending need for sand for fracking? We saw how that stock got "crushed" so do not think for a moment that a seller of wood pellets cannot be crushed too.
    Nov 8, 2015. 11:44 AM | 1 Like Like |Link to Comment
  • Prospect Capital: The 14% Yield Appears Sustainable [View article]
    I DO NOT believe the yield is sustainable. Keep in mind PSEC had to writedown their CLOs and wall street does not believe the discount to NAV is real.

    Better to look at TCPC, TSLX, ARCC and many others that are delivering several pennies more of noi AND they have a decent amount of reserves to maintain dividends in the event of a miss. PSEC struggles to deliver a penny above and wall street has figured out that management simply waiting too long to deliver a prescription of stock buybacks which is in effect self-liquidation.

    Another 1% of lost capital today. What good is 14% yield when this stock continues to fall, reducing your capital, and your total returns below better and best of breed BDCs?
    Nov 5, 2015. 01:58 PM | 4 Likes Like |Link to Comment
  • Prospect Resumes Equity Conversions Of Non-Performing Debt [View article]
    Best of breed MLPs offer 9% yields. With PSEC you get 14 yield and risk of at least 5% or more to your capital.... so what is the difference in terms of total return? Best of breed BDCs have been delivering solid noi more above their dividend payout whereas PSEC struggles to deliver one cent above....

    I am afraid there is going to be even more bad news. Mr. Market has PSEC at a significant discount to NAV for that reason.
    Nov 5, 2015. 11:38 AM | 2 Likes Like |Link to Comment
  • Prospect Capital: Q1 2016 Projections - Part 2 [View article]
    There is no magic when the only choice for any business is to self-liquidate.... after all, what will be the optimal amount of self-liquidation that will entice shareholders to invest in a company where for far too many years management has only served itself at the expense of its shareholders?

    It frustrates me to see shareholders focusing on yield forgetting their capital must also receive a return and therefore a TOTAL return. There is no good base case for PSEC.... two dividend cuts over the past few years and investors simply not believing the discount to nav.
    Nov 5, 2015. 09:16 AM | 2 Likes Like |Link to Comment
  • Prospect Capital +1.1% after earnings beat [View news story]
    Look at ARCC's beat, TCRX's beat which are significant. So much time wasted on a worst of breed BDC. Never have so many shareholders lost so much capital and still try to find a way to make a one cent beat having meaning.
    Nov 4, 2015. 06:29 PM | 1 Like Like |Link to Comment
  • BDC's Investments In JV Loan Funds Will Boost Their Investment Yield And Net Interest Income - A Case Study Of FSC [View article]
    What good is owning FSC for yield as you watch as FSC management fiddles your capital away?
    Nov 4, 2015. 01:10 PM | 1 Like Like |Link to Comment
  • Is Kinder Morgan Overvalued? [View article]
    The smaller and more nimble GPs can generate more growth than KMI. That is what investors will ultimately decide and move on. KMI will IMO be broken up after Mr. Kinder is no longer the heart and soul of KMI.
    Nov 3, 2015. 12:54 PM | 1 Like Like |Link to Comment
  • Kinder Morgan: Don't Drink The Kool-Aid [View article]
    When a new cycle begins and it becomes clear to investors that this behemoth cannot produce dividend growth without substantial increases in capex that at some point will require more equity and less debt....... then the advantages of other GP/MLP groups in terms of faster distribution/dividend growth will once again relegate KMI to the category of less than best of breed or perhaps worst of breed.

    I think KMI's long term solution will be to break itself up but that cannot happen while Mr. Kinder is KMI. He took far too long to make his move and that resulted in having to have the GP take out the MLP. History shows that EPD and MMP got it right by having the MLP take out the GP at much lower ebitda multiples that the KMI/KMP transaction resulted in.

    KMI will always lag smaller more nimble MLPs and GP/MLP groups. That is what investors are now pricing into KMI IMOO.
    Nov 1, 2015. 08:53 AM | 5 Likes Like |Link to Comment
  • What If Kinder Morgan Cut Its Dividend? [View article]
    Kinder would slow the growth of the dividend before EVER cutting it. The problem is other GPs did preferred issuances at lower rates AND avoided mandatory conversion to common. Seems to me those GPs have better preserved long term shareholder value. Those GPs are smaller and more nimble and future capex adds more shareholder value than can be added at Kinder simply because Kinder is too big to move the needle UNLESS they do monumental capex.

    Therefore, it might make sense for Kinder to break itself into several different entities so that value can be realized by segmentation.
    Oct 30, 2015. 09:12 AM | 1 Like Like |Link to Comment