Umm a little problem with the logic that because they buy now there will be no dividend adjustment. I think that is a bit simple. Pretty sure they have owned large amounts of stock when the dividend has been cut in the past. They know that we are .40 under NAV, they also know that they have .30 in dividends until EOY. so some cushion in the purchase... But that doesn't then mean that they don't have a dividend adjustment planned.
Their risk tolerance may be a bit different that yours or mine. Stock goes down for a bit after a dividend adjustment maybe they buy more and average. Maybe they think a dividend cut is already in the price of the stock at .40 under NAV - maybe they are wrong, maybe not, but its way too simple to expect the dividend is "safe" or " not in danger" based on their purchase alone.
Sorry, but I last sold at 10.43 and 10.94, in Aug I made almost 100k on 3 trades, 2 with psec and one with loco. If you want to know my trades read my prior posts....
kennybear, you get the slicktop rah rah cheer award, presented to the poster who closely mimics slicks "I never brag about my investing or trading expertise". Our dividend investors have already made their bones in the market and are now reaping the rewards of years of successful wealth building, something slick and his namesake award winners are too shortsighted to be aware of. GLTU and congrats on the award.
That's the difference between us. You're a dividend investor and I'm a ROI investor, and that sometimes includes high divvy stocks. My investment account is up (as of the end of August) YTD 27.52% and 12 months 37.34%. Since inception average 20.20% gain per year. And some years I converted to cash and sat on the sidelines. My active trading year average is quite a bit higher than 20.20%.Sitting on the sidelines with cash is how I missed the big declines under GW Bush. BTW the 5 biggest declines ever, in the DJIA were under GW Bush.
if you were an insider getting 100,000 in stock, would you really care if the dividend was cut? I'm sure it won't be cut substantially if it is, so that really doesn't make sense. This is how they often get paid exorbitant bonuses... Stock issuance!! So yeah if he gets a mil bonus, sure he's going to keep it in the market cause in managements mind with their type of income, its play money!
Ah, so now slick comes up with a bit of a "hedge" on his constant bashing. I know, agreeing with bacon2bacon below that if I were an insider and I had any thought that the divvy would be cut I'd certainly wait to make my purchase. The hit the share price would take would cost me lots of bucks. He brought up a very, very relevant point.
In addition, any insiders buying at this point would HAVE to ASSume that if they DID cut the divvy they would take a substantial hit to their purchase price. Would you buy knowing the divvy would be cut and you'd loose a big chunk of change on that announcement. Time will tell. I vote with the insiders.
pjf: That 5 year time period is for a traditional IRA converted into a ROTH, as you noted yours is.. A regular ROTH actually has no time constraints as you've already paid the taxes on the contribution.
So, to use your logic, his buys is because he is just stupid in his assessment of PSEC ability to give him a decent return on his investment. You are a dolt. He sure as h-ll knows more than you or I as to what is going on with PSEC, and to invest the capital he has in PSEC only tells me his bet is pretty safe, and will give him a very good ROI.
The div is in danger, that is why it was not announced and why at the conference call management danced arround div questions. It is possible that it might not be cut if they can swap enough assets into higher yielding assets, but then risk goes up. Or maybe they come up with some big deals that help cover it, but those are big maybes.
But what he SHOULD know is this: Is the dividend in danger of being cut? The repeated big buys tell me that at least he does not see any danger to the dividend. And neither do any of the other insidere buyers,So a short on PSEC would almost have to believe that he knows something that the insiders do not.Anything wrong with that logic?
Repeat after me, dog, "Watch me now, I'm goin' down..." You are the very mold from which Zappa cast his Bobby - and I'll gladly be your Freddie; then you can stay awake at night and say "thank you Fred.."
Maybe the stupid people are the sellers, that sold below the prices that top management bought. Top management has all the inside info and they bought while the public who only have fear and no information is selling. The selling by the uninformed is creating a buying opportunity. The buying by the insiders is giving you a clue of what the long term right thing to do is.