I partially agree with that idea. It does sound good to acquire assets at a discount but do we really want to sell the crown jewels? What happens when you sell all the good stuff? You end up with all the cr#p...
By the way, and this goes to the crux of everything, how well does Barry know his stuff? You talk about trust but I have my doubts.
I don't really have a good idea of whether he is a great mind or not. Sure, he went to Harvard, but that doesn't mean he is top notch for the same reason that going to McDonalds doesn't mean you are a hamburger.
>> Bearing in mind the current situation, and market conditions do we really think that they are going to make disposals <<
Yes, we really do want them to sell equity positions that have appreciated. The reason for this is simple: the money can be used to aquire othr assets at steep discounts. This would be preferrable to more stock offerings (forthcomming from ARCC and MAIN).
I have listened to a few years worth of PSEC quarterly conference calls. I understand your concern with the dividend payout being fully supported by Net Investment Income (NII). From holding this stock for quite some time, as well as listening to their conference calls, as well as speaking with the Investor Relations Department, it is quite evident that the management team "feels" that PSEC is a dividend paying company first, and a capital appreciation company second. As far as the shareholder is concerned, they (management) is committed to maintaining and increasing -albeit incrementally - the dividend/distribution payout, irrespective of whether the payout partially consists of return of capital and other means. They are employing this strategy under the premise that the company will, in the future, fully support the dividend payout - and some - with NII, and also "make up" for any previous NII deficits, going forward.
In my mind, it comes down to a few basic principles. Do you have trust in management to do the right thing for the shareholder? Does the management have "skin in the game," a.k.a. do they own a significant amount of shares? Historically-speaking, has the company delivered on their dividend payouts and/or capital appreciation? And lastly, in comparison to it's peers (the various other BDC companies), has the stock performed equal to, or better than it's competitors/peers?
For me, the answer to the above questions is/are "Yes," and that is why I remain being a long term holder of PSEC stock.
I would caution you to not give much (any) credence to the alias message poster, jadelover, as he is a fictional writer, and not a "real" trader or investor, in any stock - let alone PSEC stock. He is not even very good at writing fiction. Just place him on ignore.