...management committed to dividend, incremental increases, growing company, easy money Fed, NAV 10.72. It looks like a PSEC is a buy and hold.
Sentiment: Strong Buy
Updated 9/11/13 NAV increased to $10.75:
Our most recently estimated NAV per share is $10.75 on an as adjusted basis solely to give effect to our issuance of common stock since June 30, 2013 in connection with our dividend reinvestment plan, shares issued in connection with investment transactions, and our issuance of 26,733,617 shares of common stock during the period from July 1, 2013 to October 10, 2013 (including shares with settlement dates through October 16, 2013) under our at-the-market program (the "ATM Program"), $0.03 higher than the $10.72 determined by us as of June 30, 2013. NAV per share as of September 30, 2013 may be higher or lower than $10.75 based on potential changes in valuations, issuances of securities, dividends paid and earnings for the quarter then ended. Our Board of Directors has not yet determined the fair value of portfolio investments at any date subsequent to June 30, 2013.
PSEC has been a buy and hold stock for the past few years, at the correct entry points, but I don't know if I've add at current levels. Today's action may simply be some shorts covering because the debt ceiling can will be kicked down the road.
This stock takes a disciplined approach in which I only add once the price is under the NAV. Don't get me wrong because I don't trade the stock and for those that do, today's action may end up being a selling opportunity. I own enough of the company to receive a nice monthly check. Nothing like the 350K plus our CEO receives each month, but still a nice amount for a maintained life style. I use PSEC as an annuity in which I receive my equity back in monthly dividends, but I don't add to my initial holding unless it's at attractive prices about 5% under NAV.
I originally entered the stock back in 2010, around this timeframe. I only wish I had the gumption to jump in this stock back in March 2009 or had a crystal ball that told me to wait until August 2011. I did neither, but I was able to add on the down slopes of the Fall's of 2011 and 2012 and in June 2013 with my disciplined approach of waiting for the 5% below NAV entry points.
Some day maybe this stock will trade at the industry average yield of 9.5%. I believe that's what management is attempting to accomplish with their increased attention to the stock's price. I'd certainly welcome the stock's price trading at the $13.50 levels, while still receiving my monthly dividends. In order to achieve that goal though, the company will need to use existing cash or liquidity on balance sheet for buyouts, instead of issuing new shares. That would provide current shareholders a much greater return, instead of having to share equity with new shareholders as with ATM's or SPO's.
Right now people know to wait for the next offering before making an initial or additional purchase in the stock. It's the nature of the beast - GLTA!
That's what the talking heads were saying today. Big market rally was mostly shorts covering what they thought would be a dragged out budget agreement until the last minute next week.. Today's potential deal forced them to cover early. Probably go through the same thing next month if they don't settle this in a timely manner.