Trying to figure out why a stock went up or down short of some large movement for a sector or the entire market is wasting your time. If you have done your due diligence on the equity that you have bought, and understand what the company is, then put it away, and check on it once in a while. Checking on an equity every single day and trying to put a concrete answer as to why it went up or down is a simpletons nightmare.
Sorry, not trying to contradict you, but your statement is not 100% correct. Out of my BDC watch list, 36 closed in the GREEN, 2 neutral and 15 closed in the RED. A few of them had today as their ex-div dates, such as TICC, GBDC, TAXI but E-Trade already corrected the dividend from its previous closing price, therefore only GBDC and TAXI closed in the RED. Otherwise, TICC will also be included. Both FSC and FULL went up today because they got hit recently. Same may happen with TCPC. Everyday you will see different up and down patterns for the BDC sector and their ups and downs may not be caused by any specific reasons. What Slick said was not credible because many funds can only buy BDCs such as PSEC, ARCC but not all of them.
Looks like management has been doing a few things quite well the last several years.
I get tired of all the b.s. accretive mumbo jumbo below. Has the NAV increased at all since it was listed at $10.72? The answer to my question is NO! Even the company came out and stated that the NAV increased a few cents, but that was projected. When the earnings report came out, the NAV was stationary at the same $10.72 price.
2013 earnings were 1.57 for a .25 excess, 1st quarter 2014 were .32 for a .01 shortfall, PSEC put the excess into retained earnings so .24 is still available to cover any further shortfalls. As it is, the dividend has been declared thru June 2014 and by then PSEC is taking action to assure that earnings will be in excess. You have to listen to the conference calls, know how PSEC management performs, and then MAYBE you will see the light.
NEW YORK, NY--(Marketwired - Dec 13, 2013) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has recently invested $144.5 million in four new transactions encompassing 19 rent-producing multifamily residential properties totaling 5,652 rental units and 5.66 million rentable square feet. In combination with prior multifamily residential investments, Prospect has in the aggregate invested $288.3 million in ten separate transactions encompassing 25 multifamily residential properties with 9,168 rental units and 9.11 million rentable square feet.
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Keltus, I got an idea, mgt should issue more stock and use the money to pay a bigger dividend and keep doing that until they get caught.
Are they anticipating that it will be selling under NAV soon(latest NAV 10.72 on Sept. 30, 2013). For it to fall that far we'd need a serious market decline...........OR a cut in the dividend. Of course, the div isn't being currently "earned." Some of your capital is being return to you from accumulated realized gains.
Just look at the earnings estimates and compare them to the amount of the current dividend. Simple math shows that the div isn't currently being "earned."
Excuse the rest of us for not having your advanced intelligence nor mathematics acumen . Now if you could copy some of us in the humility arena..................................
Folks seem to have difficulty understanding that in every case, selling an equity above Net Asset Value is always accretive, not dilutive. Moreover, offerings below NAV are not dilutive to existing shareholders in all cases. See company 10-K for explanation. I will only sow confusion attempting to explain it here because it involves ratios and other activities, and I seem to encounter glazed eyes and slackened jaws when I begin talking mathematics.
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That is good stuff...here is an excerpt...that means there is much more....
Reports are rampant that there is a significant chance that the Federal Reserve decides to taper its bond purchases at its December meeting next week. If not then, Fed officials do seem antsy to take some action in Q1 2014. When the Fed surprised markets by deciding not to taper in September, the FOMC blamed uncertainty around the fiscal situation with an impending government shutdown and debt ceiling fight. After the Ryan-Murray compromise, a fiscal shock is unlikely in 2014, eliminating the Fed's excuse to not taper. With tapering starting to look likely, investors are trying to find a way to hedge against higher interest rates. I believe Prospect Capital (PSEC), a business development company, is a great way to do so.
"It was however foolish on my part to believe Grier in thinking that all these ATM sales would increase the NAV! Has that happened?"
Have you read the SEC filings? The ATM sales have increased the NAV in all cases. That is how math works when shares are sold over NAV. Period.
The other question is - has NAV increased? As the SEC filings show, the answer is no. NAV has gone down, but would have gone down more without the ATM sales. And the income would not be as high if the ATM sales and debt offerings had not been made to allow it to make additional investments.
Please read the filings - they explain how the company works.