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  • Update: My Reaction To ARMOUR Residential REIT's Dividend Cut [View article]
    Sold ARR when they made the previous cut to .05...and will never buy again. Worst management in the mReit world.

    Sold JMI earlier this year and ditto above.

    Long REM, NYMT, Ai, EFC, and some MORL.
    Dec 23, 2014. 03:10 PM | 2 Likes Like |Link to Comment
  • REM And The Outlook For The mREITs [View article]
    I think when it comes to mReits you are correct that it is the spread that determines the dividend. The danger is if the short term rates rise quickly. If it is a gradual increase, the mReits will have time to adjust to it and still remain profitable...although maybe not as profitable as before...again it depends on the spread.

    Even if the spread decreases it is very likely that the mReits will continue to deliver higher yields.

    The real questions you have the stomach to invest in the volatile mReits and do you have the discipline to limit your exposure?

    I am long: REM, MORL, EFC, NYMT, and AI. Some will argue AI and EFC are not true mReits but I lump them into that category in my portfolio.

    I also limit the total mReit allocation between 5% and 10%. I do the same with BDC's and MLP's.
    Dec 23, 2014. 10:35 AM | Likes Like |Link to Comment
  • Prospect Capital: Will Investors Calm Down Now? [View article]

    Agree with you! Selling stock below NAV is bad management. This practice needs to stop!

    Also, I would like to see management fees dropped at least in proportion to the drop in dividend.

    I do think PSEC is healthier now that they cut the divvy...but until the fees and ATM selling below NAV stops this remains a very risky investment.
    Dec 22, 2014. 02:53 PM | 4 Likes Like |Link to Comment
  • Conclusion To 1-Year Test: $10K CD Wins Vs. $10K Portfolio [View article]
    You also could have done better by buying 300 shares of T.

    All this shows is that stocks are more volatile than a CD. But we knew that. That is why the return is greater.

    I would never replace a CD with a stock that wasn't a blue chip. Also, if I thought I would need the money in a year why buy stocks at all?
    Dec 19, 2014. 02:52 PM | Likes Like |Link to Comment
  • Prospect downgraded as Ares is upgraded at Barclays [View news story]
    What really gives you pause is when analysts downgrade a stock and then buy more.
    Dec 18, 2014. 12:10 PM | 1 Like Like |Link to Comment
  • Update: OK, Now We're Cautious On ARCP [View article]'s, S&P, etc. have never been wrong about anything before. So their ratings have to be right...right? Or is someone trying to drive the price down further to load up on the cheap! Naw...that has never happened before has it Golden Sachs?

    I actually should thank all the sellers because I got great prices on ARCP to fill up my allocation.

    I wonder what everyone will say in two years about this reit? Hmmmm....
    Dec 17, 2014. 04:20 PM | 1 Like Like |Link to Comment
  • Understanding Prospect Capital's Recently Announced Material Dividend Reduction And Change In Policy [View article]
    Thanks Scott...good summation of PSEC's recent "sea change" in dividend policy.

    I think this is a good move and shows that management is concerned.

    "I am projecting the company's recently announced (25%) dividend reduction will more likely be an annual reduction of approximately (10%) - (15%)."

    I welcome special dividends and this new conservative approach to the dividend. I will continue to hold for now.
    Dec 16, 2014. 06:20 AM | 5 Likes Like |Link to Comment
  • Seadrill: Are Class Action Lawsuits Sending Seadrill's Share Price Into The Single Digits? [View article]
    I only wish they had cut the dividend instead of raising it to $1.00

    They could have cut it then to .50 cents and not appeared to be incompetent and / or deceitful.

    In fact, had they not increased the dividend so many times they might have been better off and at least elevated the bottom.
    Dec 11, 2014. 11:56 AM | 3 Likes Like |Link to Comment
  • Seadrill: Are Class Action Lawsuits Sending Seadrill's Share Price Into The Single Digits? [View article]

    I too think oil may get to $50 per barrel...or lower...but I don't expect that to last long.

    Although I am a dividend investor, if SDRL gets down to $9 I might pick up a 1000 shares as a value play. Who knows? They may start paying a dividend again in a year or two...
    Dec 11, 2014. 11:52 AM | 1 Like Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 7 [View article]

    Thanks for another excellent article! I always read your article though I don't always thank you for them...but know that I do appreciate your work and your thoughts.

    I sold 60% of my PSEC in September (I was over my allocation and saw trouble coming). I did add some more at $8.06. And if it dips below $7.00 I will add even more. I think PSEC will come back to around $10 in the next 12 months. When that happens I will sell the extra shares and hold the balance with a reduced cost basis.

    Best wishes and Merry Christmas! :o)
    Dec 11, 2014. 11:45 AM | 1 Like Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 7 [View article]
    I agree dnorm...opportunity costs are important. But I am getting a 10+% yield on my PSEC...not many better opportunities out there that are not as risky as PSEC...or more risky.

    With the dividend cut, PSEC is less risky than they were. So I am holding my allocation. PSEC will come back to $10 in the next 15 months.

    I too think management should cut their fees to maintain and enhance the trust of their investors. If not, I will continue to pare down my allocation to PSEC.
    Dec 11, 2014. 11:37 AM | 3 Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 7 [View article]
    I would not count on oil staying low for long term. First, oil prices are seasonal and always go down in Q4. Second, OPEC is not cutting production because they want to force out the fracking companies. Only time will tell if that is successful. Eventually OPEC will cut production and drive up prices again.
    Dec 11, 2014. 11:33 AM | 4 Likes Like |Link to Comment
  • Prospect's Distribution Was Unsustainable; Now What? [View article]
    If you already own this stock you should hold it. Eventually the price will come back.

    I am buying more at the lower prices. I will hold all of my shares until the price comes back and then sell my higher priced shares to get back to my allocation.

    In the meantime I will collect the dividends...which are still nice and should continue.
    Dec 10, 2014. 04:29 PM | 3 Likes Like |Link to Comment
  • A Fundamental Analysis Of American Realty Capital's Likely Dividend Cut [View article]
    Whenever a dividend cut takes place the price drops. Why not sell your ARCP and when the cut is announced buy it back at a lower price? If the dividend is priced in you will not only have a higher yield (because you bought a lower price) but also capital appreciation.
    Dec 8, 2014. 05:24 PM | Likes Like |Link to Comment
  • Prospect Capital Cuts Dividend, Now Yields 11% [View article]
    Me too. Now if management will reduce their fees we might see a nice upward trend in price. That coupled with the dividend cut should make PSEC stronger going forward.

    If the ATM sales turn out to be accretive PSEC will be back to trading around $10+ dollars in a year.
    Dec 8, 2014. 03:48 PM | Likes Like |Link to Comment