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Prospect Capital Corporation Message Board

  • bluewingcap bluewingcap Aug 31, 2011 11:45 AM Flag

    Can't have it both ways

    Management wants to be judged in the long term, but when questioned on a lack of dividend coverage, they only focus on the recent quarter, and evade the answer.

    As to what the right benchmark is, they want to be judged on S&P performance, but want to be considered a fixed income investment. How do they look next to the 10 year corporate index?

    They may be good private equity players, but I am simply stunned at their lack of Street acumen, and am looking for my opportunity to unload remaining holdings in the mid 9's.

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    • Well, well, if it isn't Mr. Virus (jfnh1) himself, rearing his "ugly" texts, just when you thought his negativity commentary and viral affection for PSEC was/were eradicated, he appears out of "viral thin air!"

      Thanks for all the "kind" words, Mr. Virus, and for you thoughts on PSEC. Keep thinking and posting on PSEC, while I keep collecting my dividends every month after month after month after month.......

      Dollar cost averaging and reinvesting dividends "is a beautiful thing," as the lower stock price commensurate with the same or increasing monthly dividend payouts, allows the investor to buy more shares when the price is low and less shares when the price is high (probably the opposite of what you do when investing).

      I don't know if the market is going up or down ( I guess you know it's "going down") but I guess that you are stock market prognosticator, in addition to viral negativity spreader, among your many traits. What I do know, is that PSEC has paid a dividend, without fail, since it's inception of it's IPO, in 2004, and that I am getting another one in September and you ain't!

      Don't forget to have "a great day," and to try to eliminate all of that viral negativity - it's just not health. Why don't you try exercising to rid yourself of that stress/negativity. If you buy some PSEC stock, the dividends you receive, next month, will more than pay for your membership to the gym.

    • I see the three stooges patting each other on the back once again.

      Is all of youse stupid or what? I can recall Jade mentioning several times he took losses but you three bird brains seem to forget that.

      I shore hopes you loose your as*>* on PSEC. In fact I know you are already loosing and you going to loose more.....LOL

      Do you nerds have a clue where the market is heading? Guess what....

      It' ain't uptown boys.

      PSEC's Non-accrual will increase as the economy falters and of course your beloved dividends will diminish month by month....LMFAO!

      Yo Dr. Wacko, The Chump Change King, How dose it feel to know your dividends will be cut and your stock price will decline.

      Have a Great Day.... Air heads!!!!!!!!!!!!!!!!

    • I didn't buy any at 8.57 but had my finger on the button.

    • smoothjazz:

      Regarding jadelover's most recent post/response to your last message post, you would not have expected anything "less" from him, would you have? Yes, PSEC is a "sinking ship," and FSC is just "wonderful" because of the SBIC license they have! I guess PSEC's management should just "pack it in," unless they do what jade thinks and get that SBIC license. I don't know if they (PSEC) is ever "getting" a SBIC license, but I do know that you and I are "getting" our monthly dividend, every month, and even though all of the BDC stocks have lost a significant amount of money in their stock price, "apparently" PSEC must be "the worst of the worst" BDC stocks, according to the authority of stock pickers, who never lost a single dime on stocks in his entire life the one and only jadelover himself.

    • The lack of business acumen you describe is about managements focus on increasing their fee income. The compensation structure of these bdns incentivises management to sacrify nav wlth serial issuances of stock at lower and lower prices while hiding credit issue problems. Character of management is critical.I for one one am comforted that its not like flying a cessna, its more like flying a spaceship. One small dividend increase for mankind one huge increase in management fees for the astronauts.

      • 2 Replies to liljohnsdad1
      • I did not criticize the business acumen of Prospect. They shifted to a highly profitable, underserved part of the credit markets after the 2008 debacle. They have forgone higher coupons to move up the seniority of their debt positions (which means less fee income under a 2/20 model). All in all, they run the lending/investment business appropriately.

        What they suck at is tapping the equity markets properly. After two smart offerings earlier in the year, that recent below market equity offering (and actually below NAV which is even worse)was so poorly handled, the stock traded heavy going into the recent swoon. I believe this exacerbated the drop, as there were no natural buyers waiting underneath (say at NAV), just 10 million new shares facing immediate losses and looking to be sold.

        Listening to the CC was a lesson in frustration, and when I lose faith in a mgt team, I don't stick around for much longer.

      • smoothjazz:

        Well said. With brevity and accuracy. Don't waste too much time on his posts. I just don't know why he continues posting on the PSEC message board since he has credibility with no one.

    • I wonder how they do that>

      • 1 Reply to nunthia
      • He did a great job of evading the question yes? The answer is debt.

        Hiding behind the fact that the other BDC's have a larger shortfall in the payout gap simply tells me the whole business model is flawed in the long term.

        I chased yield based on my poor analysis of management's capability to steward investor capital and properly conduct their equity raises, and got my butt handed to me as a result.I've taken my losses on a 1/3 of my holdings at the $9 level. Business income/metrics for the current Q should be quite strong, and may provide an opportunity for the stock to rally.

    • but you probably will keep.

 
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