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Fifth Street Finance Corp. Message Board

  • thewisejman thewisejman Mar 28, 2014 12:14 PM Flag

    If this MARKET can just be frozen

    in its current state and remains status quo, we can just sit tight and enjoy our high dividends, like the 10.47% dividend from FSC or the 14.4% from OXLC or the highest 26.49% from CHKR (for me), won't that be nice? Unfortunately, life refuses to be that simple.

    This current market is now going side way or going nowhere and I believe everything will change once April starts specially on April Fool's day. Best to be prepared - do not hold too many risky stocks/funds that can go down fast. Do not hold too much of a single stock/fund no matter how good it may appear. Take a look at SLRC, one of my previous favorites, it sunk BIG time when it reduced its dividend by 1/3. Look at MCGC. Can you imagine a BDC went down more than 18% yesterday and up about 6% today (FULL)? It may soon become a common occurrence for more and more stocks/funds. Life is surely full of excitement. Thoughts?

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    • OK I looked at CHKR and bought some. I hope you are right.

      • 1 Reply to mstrouse54
      • You are right about the stop loss orders. Last year I had a stop loss on some KMR shares, and a flash crash sent the price down so fast my sell order triggered a full $0.70 below my stop quote! Also if there is bad news and the price gaps down big time on market open, people will be very disappointed that their stop loss triggered 15% below the price they had.

    • Well J. as you said the market is going sideways. I hedged with TZA which I unloaded twice and bought it back the next day. The Russel 2000 is the best play on the short side only because it was at about 68 times earnings last I heard. My ARR still has not gone below my buying price but came close a couple days ago.

      High yield dividend stocks give you a bit of buffer on the down side although I am not keen on BDC's at the moment. One fellow wrote the market is heading south either in one big dump or little increments and it appears at this point it is increments.

      • 1 Reply to jfnh1
      • Hi, J1: I am glad you have been doing well with TZA, with this type market, up and down on the same day, the only way you can make money is to buy short ETFs and sell longs when the market is up and then sell short ETFs and buy longs when the market is down. I do not have a lot of luck with 3x short ETFs but do agree with you that Russel will be the one that is waiting to get hit hard, just like NASDAQ is getting hard hit right now. I may start shorting NADAQ soon. I feel the most comfortable with DXD though. I still remember vividly I gain 11k in less than two weeks by trading DXD and other stocks during the last stock crash, only lost it on TZA. It is hard to make money on short ETFs unless there are big daily swings on the market. When the swings become bigger and bigger, it will be fun for us traders. I do have a long-term core portfolio though, believe or not. But do not have the gut to buy and hold ARR like you did. I rather hold OXLC or AGNC. J

    • Sold some SAN, my Spanish bank. Bought last June at 6.79 sold today at penny from 52 week high. Also collect 3 nice 8% divs. Will look to add those shares back at 8.80 if it pulls back.

    • Okay, I listened to my own advice and forgo my huge dividends by selling CHKR a few minutes ago at 10.22, bought at 10.03 on 3/25. An almost 2% gain after 3 days is not bad. Now since I sold it, it may start jumping up, or NOT.

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