I looked at the list of BDC s and TCRD was second on the list. The top one was TCPC, it got
a score of 45: seeking alpha
Profit Risk payout analysts valuation total
8 10 8 8 6 40
Sentiment: Strong Buy
the retail crowd is dumping not the institutions. For one there is not many institutions in this co. Retail sees 7 cents loss and run for the hills. It was 3.5 cents due to accounting and the rest results in not getting the money working. These guys are smart and been around alot longer than most BDC not to rush things until they see opportunity.
Sentiment: Strong Buy
A real mystery? BDC Buzz has always rated this stock highly and felt "safe" being in it,well so much for
On the other they said be wary of BKCC and Ainv, yet both seems to be doing OK.
Sentiment: Strong Sell
Now we know why. Somebody always knows before the retail trader, who is the last to find out.
the 7 cent miss was the elephant in the room. perhaps it was just taken as a given that yield compression took its toll. there was some insight to their current situation and going forward during the final moments of the conference call. the last 2 questions in the call answered some key questions. they suggested they have multiple ways to cover the dividend and, additionally, currently have 10 cents per share of undistributed income. you can read the transcript on seeking alpha. the relevant part is near the bottom of page 5. the audio is also available on TCRDs website of course.
meanwhile, nicholas marshi wrote a positive article about TCRD after the earnings report. i assume you cant put links on here, but you can find marshi on twitter @bdcreporter. once there, scroll down and you'll see a link to an article he wrote discussing TCRD now and going forward. the tweet was from march 6th
Did the TCRD brass actually address the $.07 miss? I read the transcript and didn't see anyone raise or answer the issues...or did I miss something amidst all that happy talk? There was so much mumbo jumbo accounting-speak my eyes must have glazed over.
And where do you think they go from here?
TRCD management failed the biggest test. Do a major capital raise when you are ready to place it accretively. They had to really screw up to miss this bad. I am OK but it does reinforce why I stay with ARCC as best of breed. They know how to properly time a capital raise and their relationship with GE Capital will only grow over time.
I sold a few days ago after the announcement that indexes were going to remove BDCs hoping to buy back in at lower prices which has happened as a result of yesterday's very poor earnings announcement.
Now, I will not buy back in. I think management has a lot of explaining to do in terms of the last large capital raise. Clearly, it was unjustified by returns and that raise was over a quarter ago. Investors can usually expect a capital raise to immediately deploy and be accretive to earnings. I have no idea what is going on when you come up 7 cents short on a base dividend of 34 cents.
There is something very wrong here. Management failed to deploy capital raised in a meaningful way therefore capital should not have been raised.
Has a p/b premium and when fear came some of those were getting hit more then others
low leverae should have served it better
and now you hae some money pushing to the ones that a have a known earnings beat like mcc, ainv, pnnt (rev beat and book up big), etc.
tcrd might need more calm markets or to get past earnings and get a dividend declared as a target for a divi chase
I don't know any specifics but I did notice on Fidelity's stock research site that TCRD's collective rating went from I think 8.5 to 3.8 in a relatively short time. It's holding its own at the level I first bought it at and I added a couple of hundred shares recently so I'm keeping my fingers crossed, but I'm surprised it isn't doing better also.
Appears Blackrock increased from 976K shares to 1.713M and 5.1% ownership in TCRD. Its always nice to see the elite among institutional investors doubling down in any BDC.