This market has become stagnant lately until today. The BDC sector got hit hard pretty bad, we can blame it on the BDCs being removed from the indexes or SPO, or whatever? But the fact is that if a BDC is good, underpriced, with good and sustainable yields, then better time than today (or later when they drop more) to grab a bunch?
I bought some SCM right before closing at 14.44 since tomorrow is its ex-div date with a 0.11 dividend. I bought AINV earlier at 8.60. Tempted to buy TCPC but it was still traded at 1.18x of its recent NAV and its yield is only 8.4%, not worth the risk yet. Wanted to buy some PSEC at 10.97 badly but order never got filled (put in order after it hit its daily low of 10.97), may have better chances tomorrow. My DXD came in handy, now need to adjust my top and low sell prices. BKCC dropped almost 3% but its next earnings looks really anemic:
Q4 earnings are expected to be announced before market hours on 3/6/14Estimates: 0.260 | 0.187 | 0.110 (High | Mean | Low)
It has to reach its top estimate to maintain its current quarterly dividend of 26 cents. I never see estimate of a BDC's earnings with such as a large range: 0.11-0.26, that is kind of pathetic. That may mean it will tank big time on that day. Be warned.
TCPC - 3.81% (Wish Tusla luck on it)
HCAP - 3.79%
SCM - 3.19%
PSEC - 2.99% (wish frigator good luck; I believe it is actually not a bad buy today)
(I plan to buy more PSEC at 10.70 if it drops that low tomorrow, do not believe it will though. It may actually rise. I probably should have bought some today but missed the chance).
The top BDC winner:
GARS + 0.76% (one of the two new BDCs I recommended; still holding it myself)
My other favorite BDC (or more a floating rate capital of FSC) - 0.28% closed at $14 even
(*You should put in your buy order now; any prices at below $14 is a good entry price; at 13.50 or below, double your position; at 13 or lower, ALL IN time. That is almost a no brainer, at least for me.)