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Prospect Capital Corporation Message Board

  • jadelover88 jadelover88 May 21, 2012 8:21 PM Flag

    New here? Try KCAP over PSEC

    Perhaps some may think this PSEC to be superior investment. I wonder if many know how badly Facebook ipo performed and its effect on the overall market. One can only make any real money by trading these BDC stocks and as of today FSC is a MUCH better buy than PSEC stock.

    Jade

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    • Wrong! fsc pays more in dividends than it is earning..unless they can increase their earnings enough, fsc will most likely cut dividend. take a look at their most recent financials and i think you will agree. good luck

      • 2 Replies to ehcowden
      • <<<<....WRONG! FSC PAYS MORE IN DIVIDENDS THAN IT IS EARNING..UNLESS THEY CAN INCREASE THEIR EARNINGS ENOUGH, FSC WILL MOST LIKELY CUT DIVIDEND. TAKE A LOOK AT THEIR MOST RECENT FINANCIALS AND I THINK YOU WILL AGREE......>>>



        Would you care to elaborate on this comment?

        I took a look at the most recent financials (10-Q) and don't agree.

        As of January 2012, FSC lowered their dividend to $.0958 per month. They did this to align their dividend with projected NII instead of the more aggressive policy they've used in the past of basing the dividend payout on projected taxable income.

        Per the most recent 10-Q FSC reported NII was $0.29 and the dividend payout for this period was $0.2874.

        Looks like 100% dividend coverage from NII to me.

        Why do you feel otherwise, and no need to yell.


        RC

      • For some reasons KCAP seemed to be traded in small lots of several hundred shares. Therefore, if the market goes SOUTH again, it may go down fast.. Be warned.

        Long term, I believe its qtr dividend of 18 cents remains safe for at least this year, if things get better in the States, it may go back up to the $ 6.40-6.50 range and that would be time to sell some of your holdings of it. If it drops below $6, it would be time to accumulate...With its current >$7 NAV, it is not a bad buy at its current price, and would be better if it drops closer to $ 5.50 (which may happen if Spain and Italy tank or Greece got kicked out of the Euro...).

        Jade

    • wintersfamily0793@sbcglobal.net wintersfamily0793 May 21, 2012 8:25 PM Flag

      I'd be curious to know your reasoning why, I have looked at FSC and have considered taking a position...however the fundamentals of FSC in my analysis are inferior to the fundamentals of PSEC...

      what is your reasoning for saying FSC is better?

 
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