Yep, and you will get the 38 (plus 5) cent dividend. Factor that in as well as underwriter discounts and the offering price is not much above the last reported NAV. ARCC at a little over NAV is good, but it's not great. I already own some ARCC and I can recommend it, but as with all BDCs you gotta keep a close eye on things.
I'll be sitting this offering out as I'm 99% invested and I want to build a little cash before I go shoping.
Geeze, I will not blame you for selling PSEC at this price level, you may indeed be able to buy it back cheaper later. The problem is I believe what you were saying was the annual request from them to ask shareholders to vote YES for them to issue new shares at under NAV? Correct? Well, this is just a formality and they did that every year. Since their management are probably some of the largest shareholders plus all these large institutions holding so many shares, passing this is just a formality, year after year. I do not remember I ever saw it being defeated. The interesting part is: why will they have another SPO any time soon since they have been doubling their outstanding number of shares in less than two years via their ATM programs. It is like they can have a private SPO any time they feel like it. The value of their shares had already been diluted, many times. So voting or not voting does not really make a big difference.
I had been getting phone calls asking me to vote yes. After reading what the board was asking for I sold my position. I believe the vote was last week. Since selling I have not kept up other than seeing the price drop. Does anyone know whether the vote passed of failed. I can't seem to find any article pertaining to it in the news section. If the vote failed I would consider reentering here, otherwise I will wait till after the secondaries that are coming.
Many here, me included consider PSEC a bond surrogate and capital appreciation is low on the list. As long as business fundamentals remain intact this is a long term hold with sustainable dividend income.
With that ATM stock selling by PSEC mgmt every time the stock goes up a little. I do so doubt we will see the price of PSEC Climbing, Mount Everest soon/ Is that what you are saying about ""terrible capital appreciation payor stock - for sure"" I do so think we all understand its the wonderful dividend we are looking at that made us buy? May be I am dead wrong about that? Stephan tell me about that?
This again?? Who cares? Just buy PSEC and remember it is principles for me do come before personalities. One can not cash a "that was a good poster check"! I would rather get a dividend check, than love every post or agree with every poster.
I agree with Musky FSC PPS corrected on Dividend cut and missed earnings. PSEC may have its problems in the future. FSC has a much better upside . I am long and short on FSC & PSEC. That is to say positive on both long term.
To try again to answer your question in part.…
If, as budmasterbud claims, the shares identified in the October 16 Prospectus available on PSEC’s website were fully released into the Market between October and December then let’s look at Volume over the same period. It’s less than 120 million shares since the week after the Prospectus.
Once again, if bud is correct and the shares were sold above 11.21, then the Volume during that Price range for the same time frame is probably less than 100 million shares.
So we might presume that Market has finally absorbed these shares. But the fact is, 26 million new shares is certainly a large part of the reported volume and therefore must have had some effect on the Price.
All of this is presuming that bud’s claim, that all of the shares have been sold, is correct.
Shares were not absorbed immediately, by the way. As you say, shares were likely to have been released over a period of time and Price declined shortly after the Prospectus. Certainly there may be other factors, but you cannot discount the additional shares adding to supply.
If you own shares, then you would have received the Prospectus. If you have not received it, don't blame me simply because I have.
It was information both times provided to me by PSEC.
This time, I checked to see if it is on their website, which you could have done as well
Now, all I said was that I received the Prospectus. You can view it at PSEC's website under SEC filings. This one is dates October 16th.
Don't get so upset. I just posted what I received in e-mail, same as I did last time.
If you do your homework, you will see that it is not in error.
I don't follow how trading, day or swing, a stock from 90 to 150 is trading for 5 and 10 cent moves.
You picked a stock with an average true range of a buck or more. Certainly involving more skill than trading around X-dividend
Nicely done, by the way.
Either strategy works well with PSEC, but I've hit more home runs trading, and doing exactly as you advocate. Buy and holds collect a nice dividend, and don't have to watch the daily trading, but it doesn't bother me, because that is what I do and I enjoy it. I think it depends on the inclination or nature of the individual investor. As I've said before, efficient markets are contingent upon traders, because they provide liquidity, but there is nothing wrong with just simply holding this high-quality BDC and collecting the dividend....again, it just depends on one's inclination.
Actually slick to be fair I'm the only one who points out the inexperience in his approach and my income is from trading, over a twenty year time span.
He attracted my attention because he mocks others repeatedly and he is not a trader. He only thinks he is. He allows his emotions to take over here on he board, and certainly his buying and selling is emotionally driven as well.
He has no trading plan, he hasn't a way to manage Risk, he jumps on board when he sees a few upticks then holds waiting for the eventual rise up into dividend. It's not an efficient use of trading capital.
Successful traders do not operate that way. That is the buying and selling of a person who is gambling. It may be moderately successful gambling, but it isn't skillful. It does not take skill to sell the day before X-d and wait for it to decline more than the amount of the dividend.
94 now working on 95, 1 1/2 year time span and almost every trade has made more than the dvidend plus I have picked up some dividends while waiting for a good pps to sell at. Buy and holding does not even come close, but this stock swings in a fairly predictable pattern.
You have posted mis-information as to the ATM program before and once again are doing so.
The ATM program is set up to sell share when necessary on the open market. It is absorbed immediately.
If shares were approved in October to sell then you can rest assured those shares were sold between 11.21-11.53 from October-Dec. They never sell a 26 million share block as that would be the exact same thing as doing an equity offering at a DISCOUNT to the market.
Sentiment: Strong Buy