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Prospect Capital Corporation Message Board

  • sme20_98 sme20_98 Feb 10, 2013 3:23 PM Flag

    Management did NOT discuss lowered estimates for next Qtr

    And that bothers me. Listen, don't get me wrong--they have been great to me so far. But I was happier when estimates for future NII per share covered the dividend. Now from nowhere, the March quarter, which management had said previously would be .36 to .41(estimates for NII per share after the Gas Solutions gains were distributed) are now lowered to .27 to .31 and now are not covering the dividend, Had they addressed this as something that would be short term or even confirmed that it was lower than previous estimates and why(alot of cash currently on the sidelines perhaps?) then I would be more comfortable about it. Surprised one of the analysts on the call didn't bring it up. I will continue to hold faith that because they raised the dividend, this range of NII is tempoary and will increase going forward--until then they do have plenty of undistributed income to bridge the gap. I just don't want this to be long term numbers, otherwise the stock price will be stagnet(actually ok with me because I am in for the dividend and not capital appreciation, but it wouldn't hurt to have both)

    Sentiment: Hold

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    • please show or link me to where it was previously guided the current quarter was .41-.46? I have read and re read every estimate and not one analyst and or publication ever put the number at .41-.46 for this Q.

      TIA

      Sentiment: Strong Buy

      • 1 Reply to criminalmindscraft
      • I read in in a statement/story back when the TOWER deal was announced and how earnings would be impacted. I looked for it but because it is so old, it not on the internet anylonger. But even without that, Gas Solutions capital gains was not a .20 cent gain per share this quarter. And by the way, the range was .36 to .41 not .41 to .46. I believe that the TOWER deal was a .10 impact when completed and thats the jump from .26 - .31 to .36 - .41. Maybe new share and debt issued has taken us back until the funds get invested in these possible big deals--All I'm saying is I didn't see it coming. Maybe just management's way of being conservative. They have certainly delivered for me for the two yeras I have held the stock.

    • During calendar year 2012, we received significant dividend and interest income from our ESHI investment. We expect our income from ESHI in calendar year 2013 to be significantly less than such income in calendar year 2012. We are looking to offset this decrease by utilizing existing liquidity and prudent leverage to finance our growth through new originations, including attractive yielding investments in the financial services and other sectors.

      The current March quarter is off to a strong start, with $141 million of originations and a growing pipeline. Our credit quality continues to be robust. None of our loans originated in more than 5 years has gone on non-accrual status. Non-accruals as a percentage of total assets stood at only 1.1% in December, down from 1.9% in June 2012 and 3.5% in June 2011. Our advanced investment pipeline aggregates more than $400 million in potential opportunities, boding well for the coming months.

      Spoke of 349 Million in repayments. a untapped 740 million revolver, and approximately 433 Million in cash. 400M in the pipe with 141M committed so far in current q.

      They also spoke of a "significant deal" yet to close. Addressed the need for capital in NOVEMBER as the window would have closed and they closed 24 deals in DECEMBER. 750m in the q 5x prior year.

      Sentiment: Strong Buy

    • I read or heard that Prospect started the year very slow. Then they said business really picked up. If I am remember correctly...couldn't that explain the lower guidance?
      They are taking a very small part of the first Q and trying to guage what their business will be for the whole quarter. Can they exclude that weak beginning? No. Can they take the "really big pickup" and multiple that out for the full Q? No. They had to let it fall in between.
      So, we are left with a very limited guestimation of what the Q1 will be.
      It is just an estimation.

      We do know for a fact what they have done in the Q4 (.51)

      So, why should they discuss a guestimation based on a small part of the quarter?
      They did declare that the distribution for the Q and forward will be normal, regular ones.
      Plus they raised it 8.7% in December. Doesn't that say something about the future?

      More facts...not guestimations.

      I take facts over guesses.

    • They most certainly did discuss this.

      They had a SLOW January and spoke of a recent uptick for FEB and a SIGNIFICANT deal that has not closed yet.

      Plenty of cash to play a few cents if needed.

      Sentiment: Strong Buy

 
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