PENN has been around for a few years now, the oil thing, economy has been up and down several times as you know. Is it different now than previous down turns? My limited knowledge says things will be back down the road, how long is any ones guess. Collecting 7k every 3 months, I hope Art Penn keeps the ship sailing otherwise he is going to sink with us.
Noticed TICC had terrible earnings but still are paying a .29 cent dividend with some magic money!!!! Advise me Nunthia how can this happen, printing machine not out of paper yet!
Sentiment: Strong Buy
Pnnt is worth @@7.50 now. If oil recovers the 2 large defaulted loans (now equity) could add a other $1 or more. Penn has experience in managing assets and working with defaulted borrowers
"Penn has been dishonest about the upstream energy loans all along."
Rye you stated in a previous post that Penn was being dishonest so why would you put more money into a dishonestly run company. I'm not criticizing you but this seems a bit odd to me. Did your opinion about company dishonesty change since yesterday?
from what you are saying the stock has gone down so far that even with the stupid mistakes PENN made on energy investing investors buying in at the cheap price will come out ahead long term.
Not many investors thought that energy (Oil) would be again manipulated by the oil traders by as much as it has. Looking back on history every 5-6 years the same thing has happened with the oil futures.
Art Penn may have been over enthusiastic on energy issues but looked at the bottom line where loans were returning a handsome yield.
uptabdowntab...said it perfectly by the downgrade by Baird. No doubt a lot of investors seized the opportunity to short PNNT and buy in later. At the last conference call Penn alluded to the energy issues, now 3 months later Baird finally caught on that maybe we should give our high income clients a chance to catch up a little late I must say.
With a near 20% yield it seems like a no brainer to hold for the long term!
Sentiment: Strong Buy
His fund? You mean the PNNT fund or our fund? Now this is old news that was disclosed in last Q conference call so why is this all of a sudden a surprise?
sorry stan, trying to understand what you are saying. You said "of the 11 firms that have been on non-accrual since the firm began" since what firm began? Are you taking about Gulf resources that 80% of the capital has been recovered? If 53c a share enough to protect the dividend?
anyone can look at the chart at see the price declining big time and some of the companies hedged but investing in oil drillers at a time the Saudis and OPEC are overproducing is crazy. Art is not as smart as I thought he was. I have called the IR, Aviv several times and he acted like there really was not a big problem with their energy investments. Now if they took that 20% and shorted we would all be getting 50c dividends instead of whatever when they next declare. Investing in BDC's had not been a good experience for me unless you buy at the bottom.
PNNT started declining on Sept of 2014 from a price of 11.5 and now it is 6.23. Art Penn is supposed to be a very intelligent investor but what made him go against his promise and invest 20% of PNNT into energy loans with a soft oil market. If anything he should have shorted not gone long. Looks like from what you are saying Art Penn not only breaks his promises but makes stupid loans and we the investors are paying for it dearly with a probability of less dividends and stock decline. When you break promises you lose the trust of the stockholders.
It would look bad if they gave the reason since the truth is...."We have downgraded PNNT in an effort to drop the stock price a bit in an effort to accumulate shares for our best clients. We will upgrade at a later date when we have full positions and then upgrade further when we intend to sell."
just my opinion
seeking Alpha had this:
The team of Bryce Rowe and Dan Nicholas is still constructive on the sector, but the recent rally has left risk/reward more balanced, with the average BDC trading at 87% of NAV.
Particularly interesting is that the previously firmly shut equity capital window is opening: Nine BDCs are now trading at or above NAV, with another two within shouting distance. Three months ago, only four BDCs were at or above NAV.A less turbulent Q1 earnings season could be the catalyst for another move higher, and their longer-term view - that lower-for-longer rates is a boon for the sector - remains unchanged.
Primary beneficiaries: High-quality BDCs sufficiently earning their dividends and preserving NAV.
They downgrade PennantPark Investment (PNNT -3.2%) and Triangle Capital (TCAP -2.5%) to Neutral from Outperform, as both price targets ($6 and $20, respectively) have been breached.
Bryce Rowe ranks 1,192 out of 3,908 analysts on TipRanks.
I just saw this and it's probably the reason for today's drop. It's a shame they rarely provide a reason.
Analyst Actions: Robert W. Baird Lowers PennankPark to Neutral from Outperform, PT Set at $6 - Shares Off 4%
Listen to last quarter's conference call. 2 large upstream oil companies defaulted. PNNT now owns one, and is part owner of the larger one.Both are negative cash flows. I m pissed since Penn promised not to put more than 10% of PNNT funds into one sector and he jumped into upstream oil companies with over 20% of his fund, and has not written off the losses, but is playing around with PICs etc.
Penn has been dishonest about the upstream energy loans all along.
Unfortunately I am long. They now own a money losing upstream driller which defaulted on their debt.
As of 3/5/16, the co. noted that if all energy investments were put on non-accrual, NII would decrease by .05/share/quarter. Of the 11 firms that have been on non-accrual since the firm began, 80% of capital invested was recovered. The co. has .53/share of undistributed income that can be used to protect the dividend .