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koleffstephan

koleffstephan
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  • Understanding Prospect Capital's Recently Announced Material Dividend Reduction And Change In Policy [View article]
    Hi Scott: A well researched and well written article on PSEC. Like many long term investors, I too, was disappointed at the 25% reduction in the dividend payment, as I thought it was "too much" of a reduction. I think the company felt that the "dividend overhang" was "scaring" potential investors from considering PSEC as an investment because somehow the former high dividend payout was a harbinger of a company "in trouble." I believe this reduction in dividend payout entices "new" PSEC shareholders to become investors but it certainly disappointed PSEC's long term holders of stock (myself and others). Having said all of the above, I did purchase another 6000 shares of PSEC stock at what I believe are value prices and the management team of PSEC must think that the company is at value prices, as well, as they have purchased 4.8 million dollars worth of stock recently. Time will tell but your article certainly gave a balanced approach to the merits and perils of investing in PSEC stock and I appreciate your time in writing same. I look forward to your next article on NAV and PSEC.
    Dec 16, 2014. 06:28 AM | 11 Likes Like |Link to Comment
  • Prospect Capital insiders step up [View news story]
    jmkdog: You can count me in "your camp" as far as appreciating the significance of the insider purchases of the management team in purchasing PSEC stock. It is an unprecedented amount of insider purchases - especially compared to other BDC stocks. You mentioned that Brian Oswald does not make as much money as John Barry or Grier Eliasek, and I was wondering how you know that? Irrespective of how much money the insiders make in management fees, I just don't think or believe that they are interested in losing money on the PSEC share purchases that they made and I don't "buy" the argument that they are simply "making it look good," by buying significant amount of PSEC shares with the purported exorbitant management fees that they make - as if this were some type of "scheme" - to quote another distrustful message poster named "Zach Galler."
    Dec 12, 2014. 06:11 AM | 1 Like Like |Link to Comment
  • Prospect Capital And Share Issuances Below NAV [View article]
    darnoc111:

    I could not agree more. Most of the BDC stocks has suffered stock price losses this year. The majority of them are trading anywhere from 5-20 percent less than their NAV. I am sure that there will be more "quotational losses" of BDC stocks and either you think that these depressed stock prices are a permanent loss of capital or a buying opportunity. I think the latter, which is why I purchased another 6000 shares of PSEC on Monday, during the sell off at 8.15/share with an almost 15-20 percent discount from the stated NAV of PSEC. Either you trust the management of a BDC company to steer the company in the right direction and you therefore buy when everyone thinks the world is coming to an end but you don't (the investor), or you follow the herd and run out the door (sell) your shares and move on t something else. I am staying and I think - like you - that there will be other guests (new investors) coming back in January to the BDC stocks. Either way, getting a 12 percent dividend every month (depending upon your cost basis) pays to make the waiting pleasurable.
    Dec 10, 2014. 08:30 AM | Likes Like |Link to Comment
  • Prospect Capital And Share Issuances Below NAV [View article]
    Mr. Galler:

    I think you are waiting for "a crisis" that will never arrive. You are upset because you believe that PSEC's management company makes too much money and you believe that PSEC overstates their NAV ( I am inferring that you believe they overstate the NAV from reading your message posts but full disclosure from me is that you have never actually said "PSEC overstates their NAV"), in addition to you having a "bad taste" in your mouth with PSEC's management team because they were going to buy out a company called Nicholas Financial (ticker symbol NICK), which you owned and for which you felt PSEC was "under-pricing" the amount of money that they were going to pay for all of NICK's shares, despite NICK's management team being perfectly agreeable to the share price. Therefore, I think it is safe to say that you "have no love for PSEC management," no matter what PSEC management team does or does not do in the management of this company. Permitting the sales of PSEC stock below NAV is a necessary precaution option that exudes being prepared in times like we experienced during the financial tsunami of year 2008-2009. Having that option does not mean that the management team will automatically use that option but as a significant shareholder, I would rather the management team be able to utilize all necessary options to steer the company in times of duress. Meanwhile, the fact that PSEC has been paying shareholders 10-14 percent interest on a monthly basis (depending upon the individual shareholder's starting cost basis in PSEC stock), since the year of 2004, negates any third party's perception that the management team is only interested in making money for themselves at the expense of shareholders.
    Dec 7, 2014. 04:11 PM | 1 Like Like |Link to Comment
  • Prospect Capital And Share Issuances Below NAV [View article]
    Mr. Galler: I also listened to PSEC's last conference call and all of their conference calls. I do not think Mr. Barry's comments were frightening at all. He re-iterated the point that on the investment in question (that the analyst asked him about), PSEC did not take an economic loss. He said that the company made money. The analyst seemed to imply as to why the management team took a fee on the investment and Mr. Barry responded by saying that the management team worked long and hard on the investment and they PSEC did not hire an outside investment banker to sell the investment (which would have charged PSEC much more money than the Prospect management team charged) and therefore merited a fee. On another topic, on the previous conference call to this one, Mr. Barry's commentary on cash flow was brilliant. So, I don't know why you formulate the opinion Mr. Barry's commentary on the microphone does "harm." To whom does it do harm? You do have an inherent distrust and bias against PSEC's management team and your use of the word "scheme" in describing Mr. Barry's 300,000 share purchase, Mr. Oswald's 162,000 share purchase, and Mr. Eliasek's 50,000 share purchase of PSEC stock, recently, as if they (the 3 management insiders that I just quoted as purchasing shares of PSEC stock) were perpetuating a "scheme" - as in ponzi - is rather quite difficult to comprehend from you, considering that I consider you highly intelligent because I have read your message posts and find them to be quite articulate. Do you really think that Mr. Barry's 4,500,00 purchase of stock, Mr. Oswald's 300,000 purchase of stock, and Mr. Eliasek's over 200,000 purchase of PSEC stock, without any of them ever having sold a single share since the existence of Prospect as a public company is there way of perpetuating a "scheme?" Really?
    Dec 7, 2014. 03:53 PM | 1 Like Like |Link to Comment
  • Prospect Capital: Implications Of Below NAV Issuance [View article]
    NV_Gary:

    I agree. This share authorization to sell shares below NAV has been voted on every year - irrespective of PSEC's current stock price - and therefore, I also believe that shareholder's worries about this is "much ado about nothing."
    Dec 7, 2014. 03:33 PM | Likes Like |Link to Comment
  • Prospect Capital And BDC Expenses [View article]
    jrxs4all:

    I agree with your succinct but complete response to message poster, Bekster's, commentary on the distinction between using taxable income versus Net Interest Income as a measure of the "safeness" of the ability of a BDC to continue to pay it's dividend. Reversion to the mean in stock prices is a well-regarded observation noted and respected by many stock market participants and therefore, buying PSEC stock at it's presently traded stock price discount just makes more sense to me than paying a premium for any of the other BDC stocks that are trading at way above NAV stock prices. I do think that Bekster makes and presents an argument that is well founded and commonly employed by various investors who invest in BDC stocks and it is for that reason that PSEC stock - which doesn't conform to the majority of BDC stocks that use NII and not taxable income as it's barometer in paying out dividend amounts - will mostly always be considered by many investors to be "untouchable and risky" as a dividend paying stock. While I don't agree with the opinion of the stock market's assessment of what PSEC's stock price should be (opinion) I cannot argue with the bountiful monthly dividend payment that PSEC is paying me to "get paid to wait," until the market perception of PSEC changes (higher stock price valuation) sometime in the future.
    Nov 20, 2014. 05:52 AM | Likes Like |Link to Comment
  • Prospect Capital And BDC Expenses [View article]
    gmcmtg: In my opinion, it was "overlooked." Are you surprised. When the rhetoric is described and characterized as "abusing the ATM," and "re-arranging the deck chairs," are you not surprised that it was overlooked? Not me.
    Nov 18, 2014. 11:38 PM | 2 Likes Like |Link to Comment
  • BDC Growth Potential Vs. Dividend Coverage [View article]
    jrxsfall:

    Yes, PSEC pays it's dividends out of taxable income. A simple concept to understand and grasp for most investors. Thank for re-iterating that concept and point as I think it is misunderstood by potential investors of PSEC stock as well writers who purport to do "research" on PSEC stock.
    Nov 18, 2014. 05:54 PM | 1 Like Like |Link to Comment
  • Prospect Capital And BDC Expenses [View article]
    hi yield:

    Yes, I have noticed that CEO, John Barry, of PSEC, has purchased several blocks of PSEC stock, actually several blocks of 100,000 shares of PSEC, multiple times, this year, on the open market. The only "coincidence" I noticed is that each 100,000 share purchase brings him $130,000 per block in dividend payments per year. He is now receiving well over $4,500,000 per year in PSEC dividend payments per year. What a "co-incidence!"
    Nov 18, 2014. 03:39 PM | 1 Like Like |Link to Comment
  • BDC Growth Potential Vs. Dividend Coverage [View article]
    Buzzard: That is totally not true about me not wanting you to share your negative opinions about PSEC. As a matter of fact, for all readers of SA to know - THe Buzzard sent me a private email basically threatening and warning me that he had "more research" on PSEC that was negative in nature about the company and the stock and if I continued to criticize his "objective" writings about PSEC, he was going to expedite the negative writings on PSEC. I told him that "his research" did not scare me and that his "research" would never affect my holdings in PSEC stock. I think that the Buzzard really thinks more of himself and his writings than he should.
    Nov 16, 2014. 07:27 PM | Likes Like |Link to Comment
  • BDC Growth Potential Vs. Dividend Coverage [View article]
    Buzzard: "As for PSEC I would guess that you have a least a quarter or two a they rearrange the deck chairs." Also, "if the company continues to abuse it's ATM program to grow the portfolio, it will be at the expense of it's shareholders."

    It is both amazing and ludicrous to me that anyone would ever consider your articles and opinions on Prospect Capital to contain a scintilla of objectivity.

    Yea, Prospect Capital is like "the Titanic ship" (my quote, not yours) in having to "rearrange the deck chairs" (your quote), before it sinks, is your inference.

    Yea, PSEC management is "abusing it's ATM program" and by inference, it's shareholders. I see what you mean - sure. I guess that's why the CEO of PSEC, Mr. John Barry, just purchased another 110,000 shares of PSEC stock on the open market and continues to be PSEC's largest shareholder via holding or owning 4.5 million shares of PSEC stock without ever having sold a share since it's inception as a public company over 10 years ago.

    "Rearranging the deck chairs," and "abusing the ATM program." Quotes of yours that succinctly and completely characterize why articles that you write on PSEC cannot be appreciated for any objectivity.
    Nov 16, 2014. 05:52 AM | 7 Likes Like |Link to Comment
  • Capital Product Partners beats by $0.01, misses on revenue [View news story]
    I was wondering what makes you say "telegraphed a dividend hike for Q1," from reading the press release that CPLP put out? I also own the stock and read the press release but did not get that impression (dividend hike).
    Oct 30, 2014. 06:12 AM | Likes Like |Link to Comment
  • Prospect's Ongoing Below-NAV Sales Reach 7mm Shares In A Single Month. Should You Sell Too? [View article]
    Mr. Galler: If you truly believed and felt that I "certainly picked the right stock and management team, Best of Luck.," you would not specifically and intentionally be scouring and reading PSEC's 10k's and 10Q's public documents only - and not also, the public documents of other BDC stocks, as well - looking only for information that PSEC's management team is/was being deceitful or not entirely forthcoming to it's shareholders in the way that it is operating and running PSEC and by inference, in treating it's shareholders. Therefore, while it's always "nice" to have another person be sincere in wishing another person "good luck," and "have their prayers answered," I think it is not too presumptuous of me to "go out on a limb," and reply that "the insincerity and lack of veracity in your good wishes to me as it relates to my investment in PSEC is palpable through your written words." However, I do wish you the best of health and and I do hope that your prayers are answered also. I will be looking forward to reading what other "hidden dangers" or "PSEC management malfeasance" lurk in PSEC's public documents that you will uncover for us while I sit and collect the 12-13% monthly dividend payment and I also looking forward to learning and reading that the CEO has purchased more shares to his over 4 million shares of PSEC that he already owns. Let's both wait patiently. Until then, you certainly picked the right stock and right management team to have to wait a long time for.
    Oct 21, 2014. 04:42 PM | 1 Like Like |Link to Comment
  • Prospect's Ongoing Below-NAV Sales Reach 7mm Shares In A Single Month. Should You Sell Too? [View article]
    JMK: You "haven't been robbed." All BDC companies need to issue shares from time to time for investing purposes. Whether the shares are issued above NAV or below NAV, if you trust the management (and why would an investor invest his/her hard-earned monies in a company/stock that he/she does not trust the management team is beyond me) team to utilize the monies garnered from share issuance to make more profitable investments in the future, than what they are paying for that share issuance, an investor is well-served (in the long run) in allowing BDC companies to issue shares (whether it be preferably above NAV or if necessary, below NAV). PSEC pays it's management team well and in my opinion, pay it's investors well. Of course, an investor's starting cost basis is individually critical to that investor - as to how the capital appreciation performance of his/her PSEC stock holdings are doing - but all investors - irrespective of their stock cost basis - are doing very well in the monthly dividend collections that PSEC is spitting out. If an investor is "in" PSEC stock for the short term, he may or may not have "been robbed" of some money depending upon the cost basis of his purchase price. The same could be said about any investor investing in any stock with a short term mind frame - not just an investor investing in PSEC. Unlike Mr. Galler, I do think that the CEO of PSEC, Mr. John Barry, is quite concerned about his 40 million dollars of personal money that he has invested in PSEC stock, since Prospect became a public company in 2004. Mr. Galler makes the inference or indirect implication that because Mr. Barry is making so much money in fees from owning the management company that advises and manages PSEC, he is trying to "bait" individual investors like yourself and myself into continually buying PSEC stock, to "make it look good" and to make it seem "that he has skin in the game," when it's really "all of the ordinary shareholder money that he is robbing in management fees, and putting some of it back in the form of buying some PSEC shares on the open market." I think that in order to believe Mr. Galler's implication or assertion of Mr. Barry's motives in purchasing 40 million dollars of PSEC stock over the last 10 years, you have to suspend all forms of reason and common sense. At the most definite risk of sounding "like a broken record," Mr. Galler is simply biased - pure and simple. He is upset that PSEC was going to purchase a stock holding that he once owned, called Nicholas Financial, at a stock price or take out offer that Mr. Galler felt undervalued the company (despite the largest shareholders of NICK and the company itself determining that PSEC was offering them good value) and Mr. Galler has and continues to be, "sour" against PSEC ever since. He certainly is entitled to his opinion of PSEC and it's management team but with the bountiful dividend payout that you are receiving on a monthly basis coupled with your substantial amount of share ownership in PSEC stock that I assume you are holding for the very long term, one can only hope "that PSEC robs you and I every day, month after month and year after year." Being broke and robbed is wonderful - isn't it?
    Oct 18, 2014. 08:48 AM | 5 Likes Like |Link to Comment
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