An opinion from an article by Mr Mause at Seeking Alpha::
Price High Low Yield Value Assets
PCC $7.36 $16.40 $5.55 6.5% $13.40 $254M
BRT $6.40 $31.17 $2.03 ---- $10.50 $386M
VRTA $1.25 $6.70 $.76 ----- $3.49 $22M
VRTB $1.56 $15.42 $1.19 ------ $3.98 $98M
BMNM $.15 $163.00 $.14 ------- $.54 $146M
PCC specializes in making SBA and other loans to relatively small hotels and motels and its business functions reasonably well. It is not overleveraged and does not appear to have had abnormal default issues. But the size problem can ambush you in a number of ways. In 2011, PCC embarked on a strategic alternatives study in order to decide whether it should try to be acquired or take other structural steps. Through the first 9 months of 2012 PCC spent $3.6 million on the study. This would be fine for Microsoft (MSFT) or Ford (F); the $3.6 million would be lost in their income statements. But PCC's total revenue for the first nine months of 2012 was $12.6 million and it incurred interest expense of $2.6 million, so the $3.6 million put a big dent in cash flow. The result was that for the first nine months of 2012, PCC had a loss as compared to net income of $3 million in the first nine months of 2011. The fourth quarter of 2012 may not be any better because it will likely include a $2.2 severance payment to the departing CEO. Not surprisingly, the result of the strategic study was a conclusion that PCC should grow. I could have told them that for $3.5 million and I would have thrown in a free lunch. It's really hard to tell where PCC is headed from here. The strategic study was a one time event and so earnings should resume in 2013 but there may be other "one time events." PCC has to get bigger to produce income consistent with its book value. It is difficult for a REIT to do this but there are a variety of strategies it could pursue. This is definitely a potential value story worth watching but it also illustrates the problem of smallness.
Lots of "one time events" for this gang. Mostly it's payout time for those that are leaving. Ask why the CEO is leaving and you may get an informative response like " to pursue other interests". The real answer....we'll pay you to keep your mouth shut. Even the normally supportive Seeking Alpha questions what is really going on here.
Now for advise from a well informed source...short it if you can or else get out.
We took the advise a while back and did OK.