Usually right when someone says "It's time to move on" or "I'm done with this POS" is exactly when it's time to buy.
#NGD (When it hit the 7s),
#BRLI (When it hit 12s after a hit piece from the sweeper)
#MAKO (When it hit 12s),
#GEOY (When it dropped below 20, and even hit 15s)
#AFFY (During consolidation periods after each jump)
BDCs that pay little or nothing in the way of a dividend (ACAS, MVC, SAR) etc trade between 25 and 40% below value. It is just the way it is.
I guess corporate finance people would say it is the discount of future management costs.
Why didn't they invest much this quarter?
They haven't invested much since inception 16 months ago. They have never had less than 70% of their money in cash while taking a 2% rake on that cash.
Would you invest the cash if you didn't have to? Wouldn't a wiser strategy be to sit on 100% cash, take 2%, pare operations to nothing, and thrive on a dependable big revenue stream?
Yeah, the price makes no rational sense, people must just assume they're going to lose all their cash investing in what is perceived as a bursting bubble in the social media space, when in reality they'll be able to put this cash to work when prices are lower.
90% of closed end funds trade at discounts. 25% trade at discounts greater than 25%. Very few closed end funds charge a 2% management fee ON CASH, which is what they're doing AND take 20% off the top on any gains. Do you realize they took a management fee of $850K last quarter to manage no more than $35M invested? That's an annualized 10% management fee!!!! And that doesn't consider the fund managers annualized 9% loss for the decade 2000 - 2010 nor the -50% return on invested capital since the fund started in April 2011. You do realize that the fund lost ~50% of the average daily invested capital in the past 15 months, right? And the next report will include another $6M or so loss on Facebook as the stock price was around $30 on 6/30 and is now around $20 = 600,000 shares X $10/share loss.
So what is it you boneheads don't get? If they invest it, they'll lose it as they've done for many years and most recently with Facebook. If they keep the cash, then they're just raking 2% for doing nothing and will be forced by shareholders and the board to invest it and lose it.