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Prospect Capital Corporation Message Board

  • johnsonjoel1 johnsonjoel1 May 13, 2014 8:30 PM Flag

    For those wondering why PSEC is headed down...

    From the Seeking Alpha article this morning (notice the 6-9 month time frame...we could see $8.00 or even $7.00/share before then):


    One of my concerns is the amount of time that it will take to resolve these issues with the SEC. On the recent call when asked about a potential time frame the president responded with "We believe that the process will be about a month." This was quickly followed up by the CEO with "But we have emphasize we really don't know, we don't control these processes." Various professionals have weighed in on the timing issue and most agree that this could take 6 to 9 months and is a very involved process especially given that the next reporting period is a fiscal year end requiring more scrutiny than other quarters.

    During this time frame PSEC will be more capital constrained than previous quarters, which could lead to lower amounts of originations, structuring fees and other income. If the stock continues to trade under its current net asset value ("NAV") per share this could be a longer term problem."

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