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TICC Capital Corp. Message Board

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  • pine52x pine52x Jan 2, 2008 9:42 PM Flag

    It's the negative anticipation

    I have heard that the reason for it dropping below $10 is the anticipation that their credit line will not be renewed. At least that I what I have heard.

    I would like to buy but will wait it out for now.

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    • 138MM outstanding on their line as of 9/30/07. Two loans made are in the "expected some loss of principal category. Despite the credit conditions out there, the three banks on the credit line do not want to be in BDC business. I expect that when the the April 08 payment of the credit line comes due, it will be extended. The extension may freeze the line at whatever balance is currently owed and require that loan payoffs be applied to paying down the credit line balance. This may put a hold on increasing earnings. Also of concern is the economy and how many companies that they have loaned to will go belly up. Just like banks, some losses are to be expected, it just comes down to how good the original loans were and the extent of the economic downturn.

      • 1 Reply to polegoat
      • All this should be addressed in the yearly report and CC. Until now all I have heard out of mgmt is that they think earnings will pay the divided this year and the bad loan (s) write off.

        What business do banks want to be in if not mbs or bdc; credit cards ? Don't think so. Although I could see why a bank may not want to do business withh TICC given the track record.

    • I suspect the problem TICC has is that it is a very small ship in a very big storm. Hard to get attention and loving care from financial institutions when they have liquidity problems of their own.

6.81+0.05(+0.74%)Nov 25 4:00 PMEST