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  • Prospect Capital: Why A 22% NAV Discount Won't Trigger A Buyback [View article]
    Quoting from your article,
    "Their NAV stood at $10.29/share as of the end of the June 2010 fiscal year and it closed at $10.30 last quarter."
    It sure seems that the same, effectively, NAV was able to produce a hell of a lot more in dividends to the shareholders in 2010 than it does presently. Its ability to produce management fees however has certainly blossomed.
    May 14, 2015. 07:52 PM | 19 Likes Like |Link to Comment
  • Prospect Capital's Rights Offering: A Pure-Play Value Added Subsidiary [View article]
    From your article
    "As of December 31, 2014, PSEC had total assets of approximately $6.7 billion… PSEC had $1.12 billion of CLO investments as of December 31, 2014."
    This excerpt from the N-2 gives us a good estimation of the reduction in assets that will no longer be under PSEC (directly). PYLD would represent an approximate 16.716% of total assets.

    PSEC management claims that the NAV will remain where it is after the rights are exercised. Since the management fees depend on assets under management the PSEC management fees will stay the same since "assets under management" remain the same. However the PSEC management company will start managing an extra $1.12 billion, the assets of PYLD. If the management fee structure for PYLD is about the same as that for PSEC we just got approximately 16.716% more fees. What a way to squeeze a little more out of the poor stockholders.
    May 6, 2015. 09:45 PM | 2 Likes Like |Link to Comment
  • Prospect Capital Reports Record 97% Recurring Interest Income Mix, $0.26 per Share of Quarterly Taxable Income (Exceeding $0.25 per Share of Quarterly Declared Dividends), and Stable Net Asset Value per Share [View article]
    Interesting to note the following
    1. in spite of repeated assurances to the contrary new shares are issued at below NAV
    2. Management fees keep going up
    3. Unlike the prior earnings release nothing is mentioned of a "special dividend"
    4. The team of the 100 dedicated professionals all of whom I would think are members of the external management team are getting over 169 million dollars for their efforts and dedication for the nine most recent months. I assume the 100
    diligent, hard working, dedicated professionals include at least 50 or more clerical people whose average compensation would most likely be under 100,000 per year. That must leave a pretty penny for the 50 or fewer hard working, dedicated, high earning clique that has managed to kill our NAV.
    May 6, 2015. 07:21 PM | 1 Like Like |Link to Comment
  • Recent Stock Purchase II: April 2015 [View article]
    You mentioned something about commissions covered by promotions. Can you elaborate?
    Apr 29, 2015. 09:05 PM | Likes Like |Link to Comment
  • A Primer On Option Terminology & Strategic Uses For Them [View instapost]
    You should state clearly that there is no buyer/seller continued relationship once the opening transaction takes place. It is the Options Clearing Corporation that is responsible for making sure that the obligations undertaken by writers are fulfilled. Some explanation of how assignment works is necessary.
    Apr 21, 2015. 06:28 PM | 1 Like Like |Link to Comment
  • ETN Showdown: MORL Correlations And Strategies [View article]
    If I understand you correctly it seems to me that if one were to hold MORL along with a security highly negatively correlated with it in approximately equal dollar amounts if MORL were to drop the other security would rise so that hopefully the combined value of the two would not change much. This way one would get to keep the capital invested fairly steady and collect the dividends. Do I make sense?
    Apr 18, 2015. 11:36 PM | 2 Likes Like |Link to Comment
  • Daily Round Up 4/14/15: BH, NXRT, AGCO, COSI [View article]
    I always look at your regular articles with a lot of interest and I am thankful for them. I was wondering if you could add one more column showing the price per share that the insider transaction occurred at?
    Apr 15, 2015. 11:33 AM | 1 Like Like |Link to Comment
  • NexPoint Residential – A Multifamily REIT On Sale And Coming Soon [View instapost]
    Dondero has been purchasing large numbers of shares of NHF for his own account very aggressively for well over a year now. If I recall correctly he has been buying over a million worth of shares just about every single month. This has to be as good an indication of value as anything.
    Mar 19, 2015. 11:37 AM | 3 Likes Like |Link to Comment
  • Here's The Problem With Prospect Capital [View article]
    It is Dr. Davis. Please!
    Mar 5, 2015. 12:29 PM | 2 Likes Like |Link to Comment
  • Apollo Commercial Real Estate Finance, Inc. Announces Public Offering of Common Stock [View article]
    At what price are the ten million shares offered?
    Mar 4, 2015. 05:54 PM | Likes Like |Link to Comment
  • 5 Key Highlights From Prospect Capital's Quarterly Report [View article]
    There have been some comments about the "spinoff" being the sale of some assets to the shareholders. How can you possibly sell something to one who already owns it? Am I misunderstanding something?
    Feb 14, 2015. 04:14 PM | Likes Like |Link to Comment
  • Now Is The Time To Accumulate Prospect Capital [View article]
    I see all your figures are taken from the company presentations. It goes without saying that such figures attempt to present the company in the best possible light. For whatever reason you chose to say nothing about the exorbitant management fees PSEC keeps on charging in spite of deteriorating results. How about a figure, which by the way can be easily derived from the company published numbers, showing the amount of total management fees and the number of "hard working financial professionals" (to quote or at least paraphrase the company presenters) year by year. The 100 or so "hard working financial professionals" include a sizable number of clerical personnel whose compensation I would think is at most $50,000 per year. How much has the annual compensation of the non-clerical "hard working financial professionals" risen over the years while the PSEC NAV has plummeted? I would like to see in your articles something new, not just a rehash of the company self-aggrandizing figures.
    Feb 13, 2015. 08:20 PM | 19 Likes Like |Link to Comment
  • NexPoint Credit Strategies Fund Announces New Record Date for Special Meeting of Shareholders [View article]
    Could it be that delaying the date was done to include the recent sizable insider purchase?
    Feb 9, 2015. 07:45 PM | 1 Like Like |Link to Comment
  • Update On Prospect Capital [View article]
    It seems to me that an article doing nothing but rehashing the company presentation of a month ago and adding just about nothing new is not necessary. Like many here I am interested in some new, meaningful information about PSEC. This was most certainly not it.
    Jan 15, 2015. 03:40 PM | 7 Likes Like |Link to Comment
  • Should Prospect Capital Buy Back Its Own Shares? [View article]
    When a company buys back their own shares such shares become "treasury shares". The definition of treasury shares from Wikipedia states

    "The portion of shares that a company keeps in their own treasury. Treasury stock may have come from a repurchase or buyback from shareholders; or it may have never been issued to the public in the first place. These shares don't pay dividends, have no voting rights, and should not be included in shares outstanding calculations"

    Since treasury shares are not "outstanding" they cannot be included in the calculation of total company equity so the company equity for the purpose of determining the debt to equity ratio is reduced. So debt (numerator) to equity(denominator) ratio increases.
    Dec 30, 2014. 12:07 PM | 2 Likes Like |Link to Comment