Cut the divi and they run for the doors. Classic sign of high retail ownership. Any other reason they are selling ?
Now that the divi is lower they are handing less cash out per month. Less cash going out the door = higher NAV. A BDC should be priced on it’s NAV not is most recent or next divi. Would you spend $1.10 for 100 pennies ?
After the divi chasers all leave, the price will closer reflect the NAV. The boards has committed $100M to a buyback, which almost ensures it will. Thus the reason I am buying.
What does a 5, 8.33 or 9.58 divi really matter when a 50 cent discount to NAV is currently available. Guaranteed the PPS climbs higher than accumulated dividends.
The more the shars dip towards $9, the more I hope they do in fact go ahead with the share buy back. I know how it looks to do a SPO at $10.40 and then buy shares back a month later at $9.10....yet, it makes a lot of sense. Small comfort to those who took part in the SPO, but a benefit for the company long term.
I do suspect that was FSC s plan to make money off of the investors. sell 100m plus buy back 100m make $1.30 a share and all you need do is cut the dividend to 5 cents 12-13/ good plan, but not nice? tell me they did not know the dividend cut was coming? They did it!