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Fifth Street Finance Corp. Message Board

  • snowshovel70 snowshovel70 Mar 5, 2012 4:19 PM Flag

    Support ??

    It hasnt been at this level since January, those that have followed this stock long term do you see it going lower?

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    • The target price on the stock is over 11. Book value is 9.88

      They have about $1.29 a share in cash.

      It will move with he markets regardless of it's value. Most are counting on a dip down or worse in the coming months for the markets.

      If you don't mind holding it in a roller coaster market you may make out all right but you might be able to buy on the cheap down the road.

      I would not put my life savings in it at this time.

      • 3 Replies to jfnh1
      • FSC is a long-term hold. All should welcome a drop in price before each monthly dividend. Reinvest the dividend each month and it just does not matter if this stock stays depressed, even for a very long time. This downturn in price is a gift - enjoy it and sleep well at night!

      • I fully concur that this is not the time to back up the truck on FSC. (I have a small long here, was picking at it last week but quit at $10).

        Yes, the dividend is probably safe for now but:

        (1) I don't like all the medical industry exposure (that's a contrarian view, I know, but I think the economics for alot of small to mid sized players are changing for the worse now)

        (2) The insiders haven't been buying lately, not that their timing has been very good

        (3) The price action has been weak relative to peers

        (4) Although I am bullish intermediate term I think this sell off has a ways to go in the general market

        (5) Let's all be honest, their long run ROE has been poor in the low single digits (granted in a challenging period)

      • Jfn,

        Thx for the response, I had been looking at a few of these low cost high yield stocks and this one was recommended to me on the BKCC boards. I am still in the early stages of my investing so these smaller ones make me nervous ha-ha. I have core stocks like AAPL, MSFT, CAT, INTC, PG and a few others this would be my first "spec play" type investment.

        Or am i looking at these type of companies wrong? are they not speculative plays?

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