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Prospect Capital Corporation Message Board

  • instantwinbutton instantwinbutton Mar 26, 2013 11:23 AM Flag

    48,000 bought @ 10.97 cost average

    Back in psec, got more then the dividend by selling at close yesterday and buying today. Now it's buy and hold time.

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    • I bought a little yesterday at 10.95 and more today at 10.88. Will buy more at lower prices.

    • Instant: You are in BIG trouble, right now PSEC was traded at 10.94 with a so far daily low of 10.91, that means currently you are losing 3 cents per share, totally wiping out your yesterday's profit of 0.01 per share. Things may get worse for you, because it appears right now the whole BDC market is tanking and investors are selling off BDCs to protect their profit. Your pain may continue especially if you bought this batch of new shares with unsettled funds. You should really buy some other BDCs that dropped the most today, such as MCGC, AINV, etc. I feel your pain.

    • I think it is okay for you to brag that is quite an accomplishment and btw he said he had 1.1 million in equity and that he had negotiated his commission but was smart enough not to say how much as that is not wise as it could cause you problems with others using your numbers, besides it was his negotiations. and on day trading you have to close the position each day or there is a margin call if you are over 2X your equity at least that is how it is at Eoption. You also have to allow your shares to be used for shorting borrowing as it is on margin. It looks like I bought a little too early today, Oh well the distribution will bail me out sooner or later and I have time.

      • 2 Replies to rlbeard6734
      • i am aware of all that thank you as I am labeled as a day trader at Eo-ption and I can figure what the numbers of his trades are, he stated in a post he has $1.1 million that he worked up from 70k in 2008. whether he would be in big trouble i doubt I have dropped a half million on aapl spreads and it didn't give me big trouble and with the size of his account a $1 drop would only be $48k hardly an amount to lose sleep over if you have $1.1miliion. it is a variation but he said he was now in for the hold mold. i have found that you don't have to day trade every day but when the opportunity arises and I think that is what he is doing, sometimes it is knowledge and other times a feeling. the good thing is that in another month 11 cents of our mistakes will be corrected. the other side as I previously stated for him the income stream alone is enough to be thankful for on that type of money at 12% and if you can pick up a little more by trading several times a month it breaks the monotony and is fun. we all make mistakes but I trust what he says until he proves differently. I appreciate your new attitude with me it is pleasant I do not mean to offend or mislead anyone. an idea for you on a trade I just did and your thought please. just did 400 contracts long may 57.5 cop calls and sold 400 contracts of may 60 calls, a bull call spread, at 1.81 debit, the thinking is (and i have been long COP for 3 yrs) is that earnings will be good, alaska oil tax coming down, great discoveries in the Gulf of Mexico, possible dividend increase this year and CC on 4/22 should all positively affect this but all I need is it to trade sideways to make 35%. Feelings?? tia

      • relbeard: first of all, he did sell his shares bought yesterday at 11.15, one penny per share more than he paid, resulted in a few hundred dollars' profit. Then he supposedly bought back more today, at price of 10.97. Therefore, he only had about half a million dollar in PSEC. But PSEC continued to drop so he would be in big trouble if the bleeding does not stop here. I believe may continue to drop this week or even early next week.

        Secondly, if he is indeed a day traded and labeled such by his brokerage (you have to earn it, it is almost like you commit a crime but they will reward you), they will actually raise your margin from 2x to 4x. Sounds ridiculous but absolutely true. If he is indeed an active trader, then they will automatically reduce your per trade commission.

    • To clarify for everyone that missed it... Slick included who doesn't understand his foot from his #$%$.. I sold PSEC yesterday, same day as i bought it for 0.01 higher then i paid. My commission is $7 per trade at TDameritrade. (I negotiated the commissions lower then the 9.99 they advertise) I can buy and sell PSEC all day long if I wanted to as long as I don't see at a loss. I have a margin account and thus I dont have to wait for funds to settle. EVER. And i'm never charged margin while funds need to settle or any of that. I sold PSEC at the close yesterday because I got a feeling that I could buy it cheaper today.. I just got this feeling - I can't explain it.. *wink, wink* as for the poster "notmakingalotofsense." I want to say that by selling 0.01 higher at $11.15 and then buying back at $10.97 that is a net savings of 0.18 from yesterday, larger then the dividend paid of 0.11. So I have a net savings of 0.07 over yesterday.. I used PART of that savings to buy more shares.. 300 more then yesterday and then kept the remaining what would have been my dividend of 0.11 as CASH in the account. IMAGINE THAT!! So its like i'm paid before the rest of you guys!! cool huh? As for this BDC trading above NAV... its not even 0.20 above NAV! So think about that... SLRC and many others trade well above 5% over NAV.. and PSEC is like 2% over NAV. 2 freakin percent.. its one of the cheapest BDCs on the market if not the cheapest AND ... it yields the most... AND.... it had the best recovery rate and lowest dividend cut in the space.. HOW CAN YOU BEAT THAT? lol

      • 1 Reply to instantwinbutton
      • Okay, instant, please be careful with your bragging, not that I do not believe you but if you indeed can use your margin to buy a bit more than a million dollars worth of stock, even as a day trader to who the margin will be 4x their account total (instead the normal 2x) that means you will have to have a minimum balance of at least 300K or more. If that is indeed the case, you will not be paying $7 commission, you will be paying 5.99 or 4.99, or go to Vanguard and pay 2.99 a trade. You need to re-negotiate with TDameritrade. Even Scottrade charges only $7 no matter how small the brokerage account is. Also, margin is not free.

    • You lying sack of #$%$. Scroll down and look at your post yesterday where you "bought" 47,400 shares at 11.14. Just go away.........

    • I thought you bought 47400 yesterday at 11.14 at noon

    • Now holding 11,000 shares with a dollar cost average of 11.05. Have limit order to buy 5,000 more shares today if it dips below a certain target today, and it isn't too far away....

    • Instant ...

      That's a strong buy on the heels of a downgrade. But, I am holding 30,000 shares myself so I can't disagree. Good purchase, although it might go down a little more, but not much. This is part of half dozen stocks that are my core .... meaning I just let them pay dividends at this point, and I don't trade them ... not often anyway.

    • Psec now yielding north of 12 percent. That is very nice, and without the risks of mortgage reits. 30 percent debt to equity.. This is looking so much better then mtge or agnc or anywhere else right now. Now I can sleep well at night again.

      • 2 Replies to instantwinbutton
      • Don't let the fact that PSEC has lost 40% of its value in the last 5 years bother your sleeping habits. I know I wouldn't be able to sleep if I owned this dog! Want your feelings hurt. Compare the growth and dividends of KCAP to PSEC for any time fram you want. Growth + Dividends = ROI. The ROI in PSEC is only the dividends minus the loss of capital. Factoring in the COL makes it seem even worse!

      • instant: At first I thought you know what you were talking about, buying and holding a good BDC, collecting its stable dividend for long term. Yet you are basically a day trader since you were just in and out of PSEC, making a quick profit. I do not know if you were just bragging because buying 47,770 shares of PSEC at 11.14 yesterday, not counting commission required cash of 531378. Then you said you sold them yesterday at 11.15, forsaking the 11 cents of dividend you could have got. Then you said you turned around and bought back 48,000 shares at 10.97, which requires another cash outlay of 526560. Unless your account has over 1M in cash just sitting there or you are a day trader and allows 4x margin, otherwise that means you bought your new PSEC shares with unsettled fund, therefore if PSEC tanks BIG time in the next three trading days, that means you would not be able to sell it till next Tuesday whether it goes up and down, you will be like a sitting duck. Your sole profit so far was $ 477 for yesterday before commission, from a day trade of over half a million dollar, not even 1% of the total. Is that smart? PSEC was just traded at 10.95, adding back the 11 cents dividend to the price, it will be around 11.06, only about 8 cents less than what you paid for it yesterday, but you will collect the 11 cents dividend, which equals to $ 5,247 of dividend you will miss. Your trying to time the market may prove to be your demise. If I were you, sitting on half a million dollar of one BDC which is still being traded above its recent NAV, I would not be able to sleep like you claimed.

7.45-0.15(-1.97%)3:42 PMEDT