The writer owns this pos and conveniently ignores the negatives which are many.
Like that the ATP deal is half dead and the remainder is still in bk litigation. No one bid on the Gomez property so ngpc owns a stake in an abandoned well . BTW the stake also has an expiration date on it so they don't keep it forever. If the second well gets classified as a credit interest, they will be a unsecured creditor who will get nothing for their 30 mil.
He mentions black pool which defaulted, changed its name to huff and has missed a maturity again in July. I don't think that black pool/huff has ever made a payment to ngpc in 3 years. Another 15 mill there in jeopardy .The chief investment officer walked out 9 months ago when the stock was 7.50. Today its sinking to the low 6s. Looks like he knew what the future would be like.
Lastly, this fund has gone deep junk on most of its newest loans. The fund has lost so much capital through bad loans that they have to reach for yield, less the fund will melt away from fat mgt expenses and paying a div. I estimate this fund needs 16% to maintain itself or it shrinks yearly. The fund is nothing but a mgt honeypot to be milked untill dry. And they are entering general business deals. I thought they were energy experts? They failed at their expert field. Why not go into areas they know nothing about,lol.
You know more about what kind of #$%$ they carry on their balance sheet than the author of the SA article does. The level 3 issue is true for all BDCS, the self serving management I assume for most. I'm in this pig at an average cost around 6.1 I assume published NAV is overstated and hope my low cost cover for the issues you've raised. We will see.
The article simply points out the facts: The company consistently pays a 10% dividend yield, creates solid cash flow, is coming off a very good quarter that handily beat earnings estimates and increased book value further, making the stock that much cheaper as it already trades well below book value. It is a compelling story. The negative issues are the same for any investment company (risk of default, etc.), but with oil prices creeping up by the day and another quarterly dividend shortly upcoming, now is a good time to get involved with NGPC.
Why should anyone listen to a guy who thinks if this fund liquidates it would get 9.00 per share. Either he is an idiot or the market is pricing this junk fund at a 25% discount to book. No, the market is not dumb. It knows the fund couldn't get anything near 9.00 on its assets. More likely 6.00 since most of its investments are level 3 type. That means no market price available and little of outside indicators to place a value on it.
Lastly, he sure ignores the fact that this fund has been crushed over the last 5 years through bad investments. In fact just in the last year this mgt bought up millions in GMX resource bonds only to have to write them off 100% just a few months later. Mgt is clueless and incompetent and now has lost so much capital that the fund simply is to small to generate enough return to pay the div and the mgt expenses. Its totally impaired.