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Ares Capital Corporation Message Board

  • rollnon rollnon Nov 8, 2011 10:29 AM Flag


    Only BDC to beat earnings and raise the dividend and the stock goes down? Makes little sense to me. OTOH perhaps a buying opportunity?

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    • The investment banks are selling the BDC sector. Any bad news among the sector creates a sell order.
      I think this is a buying opportunity for ARES.

      The banks will flesh out whether to trade ARES as a lone stock outside the sector when they are sure the reporting is correct and the company is not hiding anything bad.

    • I would make a guess that the share price is down due to the fall in NAV. But due to deteriorating conditions in the credit market for less than investment grade debt during Q3-11, the fall in NAV is no surprise - and NAV's have been falling for almost all BDCs. [The NAV fall was even less than what I expected.]

      Also, the market needs to wait till after the conference call to weed out the one time events that may have colored the [great] Q3 numbers. But at least until the call - this camper is happy. the big fall in incentive management fees really helped the NII/share. And total investment income was up a good bit - too.

    • Iknow- but that seems to be the way the game is played - sell on the news. Many have bought lower AND the next div date is quite aways away(12/13/11) so they cash in and then buy back lower.

      I'm looking too take a position but will wait for a bit lower. At 9% I'm not going to wait too low.

      Check out TAXI - hell uva story! I bought and am continuing to buy in small portions. Ex-Div is around 11/14/11 appox 6% but the story is growth more than div, in my opinion.

      Let me know what you tink of it.


15.82Nov 30 3:59 PMEST