Fri, Apr 18, 2014, 8:00 AM EDT - U.S. Markets closed for Good Friday


% | $
Quotes you view appear here for quick access.

Prospect Capital Corporation Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • catnippss catnippss Jan 19, 2012 4:36 PM Flag

    Why R Investors happy w/ price increase?

    @kole - you lucky son of a gun! Wish I knew about PSEC when it was that cheap.

    You make valid points too, often what most sensible investors grapple with.

    But here's my point - You're strategy for investing depends on why you purchase the stock. What I'm saying is, any stock that has a high yield (and here's the key) because it's a BARGAIN and not because it's possibly going BANKRUPT, your goal should be to buy as much as you can while it's extremely cheap, and hope it stays cheap as you accumulate. Why? Once you purchase the stock at that price, you essentially lock in the yield. That means as dividends stay the same or even increase, your yield stays the same or greater.

    PSEC's high yield makes it a bargain because it's not headed for bankruptcy, it's margins are outstanding, it's leverage is manageable, actually less risky compared to its BDC peers, and the payout ratio is in the green. PSEC having genius management means as long as they run the company, PSEC's success should be sustainable.

    Think about this - when you buy a CD - you like higher yields right? Why does this change in investors minds just because it's a stock?

    If you want to buy a stock for appreciation, buy Apple, Google, or some other high growth no dividend stock.

    Sometimes you can have your cake and eat it too....aka buy XIN and NM for appreciation and income *smile*.

    @jade - your point about buying stock on the cheap is valid, but kole is still making a solid purchase at 12 simply because PSEC is such a HUGE bargain. Even at $12, you get a 10% yield. Most financial advisors are using 8-10% return as what you could HOPE to get investing in the market for retirement. PSEC AUTOMATICALLY gives you this with dividends.
    I'm an owner of NLY. That's the perfect case study for benefitting when prices of quality high yield stock stay low.

    Also jade, my NBG purchase was on pure speculation using the "too big to fail" theory. Of course this was a bad purchase because I didn't account for the "not too big to reverse split 1:5" theory! Killed me. Lesson learned

10.89+0.02(+0.18%)Apr 17 4:00 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Weibo Corporation
NasdaqGSThu, Apr 17, 2014 4:00 PM EDT
Triangle Petroleum Corporation
NYSE MKTThu, Apr 17, 2014 4:01 PM EDT