yes I was surprised not to hear from Coop too.
I do think the company has continued to change direction away from the morgage stuff and more into the oil and nat gas side which should be a good stragety going forward. The only odd thing I see is the Yorktown center stake in a state where Taxes are a real problem for businesses to perform well, but what do I know, KFN management has been doing a pretty good job with the new directions it has taken in the past few years, this could work too.
With Q2 we will no doubt move solidly cross the $10 book value. That said, my current true value number only takes into count today's book value at 1.3X. Wallstreet IMHO is letting this company go under the radar for what ever reason. If we assume Q2 comes in at a book value at $10.5 and say the rest of the year plus Q1 of 2013 moves the BV to $12 (and I do think I am conservative here even after the distribution)should have the target price at $15.60..., so where are the analysts upgrades and numbers? That is a potential of over 50% increase from todays price per share. Is there some question that they will not achieve this number? Are they not projecting mid teens return on investment? Don't they deserve a premium to BV? Wallstreet are you asleep? ALL JMHO.
Too a degree I share your focus on BV. Therefore we should be grateful for the run up in high yield debt over the last Q which helped boost other income by $63M. Let’s hope KFN’s trading acumen can capitalize on that long term. Note though we’re still below the $9.91 BV of 9 months ago.
As for the true value of this investment you’re spot on with that! The pps doesn’t reflect it. Benjamin Graham would probably suggest liquidation.
I haven’t gotten to the Q & A yet but if Cooperman’s sanguine I’ll be surprised.
hmmmm....no, I say only $.20 because of the flexibility they enjoy with the supplemental distribution option. I do think that earnings will surprise significantly to the upside and both BV and share price will approach $10/share - which is additionally supported by the $0.20 distribution. If it was not for the negativity inundating financials generally, the stock would push $12 this year.