I believe in the next few months, until the end of this year, there would be abundant opportunities to buy GOOD BDCs in bargain prices and lock in the high dividend yield. After that, the chance will not return and most of the BDCs will be sold with a premium. I had seen same thing happened with Fixed Income funds and preferred stocks and now it would be BDCs.
TO BEEFSTU: I seriously doubt that anyone else on this board is interested in your observations of JADE'S trading. I assure you I am NOT. I inform you and others on this board that since Nov. '07 "insiders" purchased (for cash) over TWO MILLION shares of PNNT. No options!! As of 9-1-10 there have NEVER been any sales by "insiders".--These are FACTS from SEC filings--We can rely on FACTS. If you persist in denegrating PNNT show us some FACTS to justify your position or keep your thoughts to yourself. friendlytrader
is it dangerously low liquidity? unsustainably high fees? unlikelihood to keep and/or raise dividend moving forward? poor asset quality?
or is it simply because the PPS keeps going down?
i'll accept anything from the first paragraph (if backed up with supporting links) but the second is more of a case for buying than it is for selling, at least for anyone with a time horizon longer than a month or two. and i would assume, given that this is a high-yielding BDC, most of us are here because we are looking for long term value with a current income kicker (or vice versa).
the NOI last quarter was 0.28 and they declared a dividend of 0.26, which means they have room to grow the dividend if they continue to perform as is. they also made more loans than was paid back last quarter, and although they raised capital several times slightly below NAV, they are getting even more bang for their buck from the SBC facility.
i for one think PNNT is poised for $1.20 dividend over the next 4 qs and a NAV that stays well in the $10-11 range.
that piques my interest when the PPS breaks below $10 (discount to NAV, over 10% yield and 12% NOI yield).