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Brucejfern

Brucejfern
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  • Prospect Capital's Dividend And NAV Sustainability Analysis (Pre Fiscal Q4 2015 Earnings) - Part 1 [View article]
    SA writers would better serve readers by spending less time analyzing this never ready for primetime BDC.
    Jul 28, 2015. 12:42 AM | 4 Likes Like |Link to Comment
  • Cliffs Natural - Thinking Of Buying The Stock? Here's An Alternative [View article]
    CLF is insolvent. Buying the convertibles is a fool's errand simply because CLF will do any deal to survive including issuance of a toxic preferred that would wipe out all common shareholder value. No buyer is going to give money to CLF in order to right itself without ending up owning substantially all of CLF thus the only opportunity for CLF financing will be some sort of toxic instrument.
    Jul 26, 2015. 11:00 AM | 1 Like Like |Link to Comment
  • Both Crestwood Companies' Dividends Are Not Sustainable [View article]
    Run away from Crestwood. Turns out the merger was of equally mediocre MLPs that resulted in nothing valuable being achieved or attained.
    Jul 25, 2015. 04:17 PM | 1 Like Like |Link to Comment
  • Hatteras: I'm Not Letting One Bad Report Scare Me Away [View article]
    Using logic ignores what has happened since May 2013. TOTAL RETURNS in mreits since then have been horrible for mreit investors. We are at the end of a 30 year period (supercycle) of downward moving interest rates. We are now beginning a cycle of upward moving interest rates. Investors have long forgotten the impact on Ginnie Maes years ago. It will be the same or worse for mreits.

    It will be ugly and when investors look back a few years from now they will have total returns so low the risk/reward didn't make sense in the first place.
    Jul 24, 2015. 09:13 AM | Likes Like |Link to Comment
  • The Last MLP Safe Haven Is Now At Risk [View article]
    Markwest had been advertising higher distribution growth that never materialized and many long term holders got out because of sheer frustration with the never ending 1 cent/qtr increases. It stands to reason Markwest was in a heavy build out mode and made investors wait too long for the rewards of such massive build out which should have been much higher distribution growth.
    Jul 22, 2015. 08:44 AM | 1 Like Like |Link to Comment
  • Crestwood Midstream Partners Isn't As Stable As You Think [View article]
    Crestwood is the merger of two mediocre MLPs to create one large mediocre MLP.
    Jul 21, 2015. 12:17 PM | Likes Like |Link to Comment
  • Obtain 10% Dividend Yield From DirectCash Payments [View article]
    The market is signaling risk associated with this investment.
    Jul 19, 2015. 08:41 AM | Likes Like |Link to Comment
  • BDCs And 'The One Thing' [View article]
    SME20, good to see an investor that gets the concept of TOTAL RETURN. These high yield chasers are not calculating their lost capital in these high yield BDCs nor are they considering that the only way for a high yielding BDC to continue making high yield payments is taking higher and higher risks. This assumes the market will continue to highly discount high yielding BDCs because of these fears that management must continue to take extraordinary risks to keep the dividends in place.

    If PSEC wants the market to appreciate their significant discount to NAV management MUST take a step backward and buyback significant amounts of stock. WHY? Because share repurchases offer THE BEST return for shareholders. No loan offers such superior returns. This assumes the discounts to NAV are solid. Management can reissue shares at higher prices when the stock recovers. This requires management sacrificing short term fee income and clearly PSEC management is not up to the task at hand. So Mr. Market ignores everything PSEC mgmt. says including another round of financial engineering.
    Jul 17, 2015. 09:24 AM | 4 Likes Like |Link to Comment
  • Prospect Capital And BDC Risk Profiles: Part 2 [View article]
    How is your capital side of owning PSEC doing? You cannot assume the market will reward a 13% yielder with capital appreciation.... just because.
    Jul 16, 2015. 02:15 PM | 3 Likes Like |Link to Comment
  • Genesis to buy Enterprise Products' offshore pipeline business for $1.5B [View news story]
    NGLS would fit into EPD very well. Would give EPD all those fractionators in the gulf and Louisiana in addition to the export capabilities of NGLS.
    Jul 16, 2015. 12:50 PM | 1 Like Like |Link to Comment
  • Investigating Prospect Capital's Q2 Lending Activity [View article]
    Not one of those loans can offer the same superior return to a massive buyback of stock if these discounts to NAV are to be believed. There is a time for a company's management to send a message to the market about the undervaluation of stock thus the use of buybacks.

    PSEC will meander here for years because too many investors too many times have been burned by PSEC and its management team.
    Jul 15, 2015. 09:17 AM | 3 Likes Like |Link to Comment
  • The Top 10 Things To Like About Prospect Capital Besides The 13.4% Dividend Yield [View article]
    With all due respect to these PSEC lovers the simple fact is that lending money for PSEC is a greater risk than simply buying back shares IF and I say IF the discounted value of assets to stock price is to be believed.

    Therefore, the street is voting with their feet and do not believe ANY of PSEC's financial engineering maneuvers are nothing more than rearranging deck chairs on a sinking ship.

    The street is demanding a cut in management fees or a big stock buyback or both before anything else including additional lending.
    Jul 14, 2015. 05:41 PM | 9 Likes Like |Link to Comment
  • Why We Like MPLX's Acquisition Of Markwest Energy Partners [View article]
    Makes the WMB/ETE deal undervalued so ETE will have to pay closer to $70.
    Jul 14, 2015. 09:27 AM | Likes Like |Link to Comment
  • Prospect Capital Management And The Brilliant Spin-Off [View article]
    The market has spoken. PSEC is all show and no go. Investors no longer believe after two dividend cuts that this management team serves shareholder interests.

    The ONLY way is a significant buyback of shares below NAV. PSEC is not going anywhere until it takes a step back before trying to go forward. If management is unwilling to buy in shares which is a far superior investment to anything the company can possibly invest in outside the company then there is no point in puff pieces that try to create the impression that the market is stupid and failing to see everything. The market sees everything!
    Jul 10, 2015. 05:44 PM | 16 Likes Like |Link to Comment
  • Energy Transfer may go hostile for Williams Cos. [View news story]
    I am long ETE, ETP and WMB. The deal does undervalue WMB make no mistake about it. The deal will get closer to $70 which is within 5% of fair value. I have to decide how much more ETE stock I want to own assuming the deal goes thru.

    From the history department the deal ETE tried to make for Targa was undervalued at the time the offer was made. Remember these assets are long term assets and the cash flow discount models clearly show ETE's effort to take companies out and unless EPD or KMI get in the game...... I wonder what is keeping EPD from taking a run at Targa.....
    Jul 8, 2015. 08:18 AM | 1 Like Like |Link to Comment
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