this was due to the equity raise they did in may - they brought in 90 mm in new equity and didnt invest it due to the interest rate changes over the last couple of months. they are fully invested now and expect that they will show a quarterly return in the mid teens for the rest of the year. i just got off their conference call . there was dilution of earnings due to the new investment that was not put to work. I believe it will be a quarterly blip and things will be back to normal the 2nd half. you will see some panic selling this morning and I would not be surprised if it dips to high 5's at some point but I would expect over the next few weeks it to settle around 6 or better. then should climb back to mid 6 range long term. If you are happy with the return I would not sell it - just sit on it for a few years - you only get hurt if you get out and then want to get in if it bounces higher than where you got out. plus dont feed the sellers.
as I said yesterday - it went down and now it is settling back up a little after all the panic selling. if you sold yesterday you can buy back in today at a higher price. lol. this stock loves to bottom in the low 6's when those that dont understand it panic. quite frankly interest rates are going to go up - BUT - the yield spread is widening - which is good for this stock. they have been suffering due to operation twist - which is the qe bond buying to suppress the yield spreads - we make money in this stock when the yield spreads are higher - ie the difference at what they can borrow "wholesale " money and then lend retail money. that is the profit margin. I am comfortable with this stock through 2015 before I would start to wonder.
buy this stock anytime its lower than 6.25 and sell it when it goes higher than 7. collect a fat dividend in between those actions.