Isn't owning this like owning junk bonds? Many of the companies this thing lends to could be crushed by the sequester, the Obamacare penalties, and other tax hikes. I think this gravey train has been derailed.
If you are that nervous, why not sell the stock? Gains and losses are all paper until you buy or sell anyway. My only regret about owning this stock was not understanding the rule of buying at/below NAV until after I made my first purchase.
Just be patient and hold off buying until prices come in to a point where the yield compensates for the risk. This stock traded for under 10 in Nov and under 8 Aug thru Sept last year. I think that you will see those prices again this year..........
Again, you sounded might dumb, so you believe it will come down to under 10 and under 8 and you are still holding it while you can sell it at above 11? Make up your mind. You do not sound very convicted in how good this stock is.
Roubini, junk bonds typically are more liquid than the bonds PSEC holds. However, Junk bond average yields are lower than PSEC's bond yields. PSEC's loans, most of them anyway are secured... north of 80%... The credit quality on PSEC has been all-performing so far since 2008. PSEC's companies will definitely have a harder time paying PSEC back if the economy runs into trouble than investment grade quality bonds. Investors are compensated by the 12% yield for the increased risk profile. I really like PSEC, but paying above NAV would be too scary considering the risk you assume.
Instantwinbutton is probably one of the sane and smart investors here beside those who regularly participated in both the FSC and PSEC board, such as Wayne and Kel. The Benjamin Graham school investors (such as Buffet) believe they should only purchase stocks that are at least 40% below their fair market values. Now the most difficult part is where to find these stocks that are so undervalued. You must do your own diligent homework and DO NOT trust or listen to anybody (incluidng me) or you would be very very sorry. There are no BAD stokcs, just BAD investors. If you believe PSEC is a good stock that is still undervalued, hold on to it. Otherwise, sell it.