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Solar Capital Ltd. (SLRC) Message Board

  • eagles123 eagles123 Aug 5, 2014 12:14 PM Flag

    Terrible repurchase program

    They bought shares at around 21.75??? at only about a 2.5% premium? Really? With today's price at around 19.45, they totally mis-timed and now their repurchase program has expired. Terrible execution

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    • Yes, and the analysts really reamed them on the call for it. Very clear that they are unhappy that mgt has removed even the *option* to repurchase shares given that we are now trading at a 13% discount to NAV.

      • 1 Reply to strum_this
      • SLRC should have never repurchased its own shares in the first place.......

        Does not surprise me that the SLRC price has dropped off as the recent
        repayment loans were effected on some of their highest earning loans.
        SLRC has increased the loan portfolio quality (so they say) at the same
        time that market rates for originations was compressing.
        Double wammy for the NOI...??

        Now, its only natural that the SLRC stock price, "unprotected" by Gross, has slipped
        to reflect investors demand for a better income yield given the reduced NOI.
        SLRC is still a group of sub-prime mid market loans.

        Buying SLRC at a 13 % discount to NAV sounds like a safer way to invest for
        income within the BDC sector.......remember what happened in May 2013 when
        fear of a real rate hike hit the market..........?

        I feel the SLRC portfolio is a relatively strong quality.......but at prevailing rates
        it just isn't generating the needed NOI .......and Gross is not helping to support
        the price any longer, which is the best thing overall.

        Will we see $ 19 for SLRC ....8.42 % yield then, with a 15% discount to NAV ..?

        Only thing I fear now would be a "surge" in non-performings

        Long SLRC for 5 years

    • Agreed. Gotta have some more firepower in the event that the stock has one of its inevitable downward spikes like it has seen recently. That said it's probably a decent buy here getting 8% yield and trading at more than 10% below book.

 
SLRC
18.01-0.02(-0.11%)Dec 24 1:00 PMEST

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