Oh you miss me, is that because I am your conscience? Did you invest 100% of your money right now since you appear to be so confident?
Let me tell you, many of the private equity firms are now holding tons of cash and if they do not invest them be the end of this year, they will have to return them to their clients and forgo the 2% fee and 20% bonus (on profit) they will charge. What do you believe they will do?
The problem is everybody is county on the FED to continue their easy money but the problem is Bernake kept changing his mind and in how long he will keep buying bonds. He can very well all of a sudden announces that the FED will increase interest rate or stop buying bonds. It will be like a time bomb and the whole market will tank so fast and so badly that everybody will be caught. All these large firms and day traders have programs helping them trade and they have stop losses in place and when the automatic selling orders start kicking in, it will be very very ugly. You do not appear to see that, let greed blind your eyes?
Right now, almost the whole BDC sector is either fair value and overvalued, many are now selling above their NAVs and most of their NAVs are overblown any way, that was how KCAP got in troubles recently. At this price, the upside of PSEC is in the 11.35-11.56 range, but the downside is way below $11. There are really better buys out there. I would rather own AGNC, RSO, NLY, MTGE, NCT than PSEC or any BDCs at this time.
Of course, why should I teach you all these basics if you are too BLIND and stupid to see. LOL
I hate to say it but I actually agree with you and it is why I sold all 11k shares I had because I didn't like their ATM after they said they wouldn't do any more SPO in near future only a week ago or so that they had plenty of money. I don't see all of this borrowing and stock sales as a positive for me as a stockholder. There are plenty of good stocks and JAZZ, aapl, LM, cop, and de are some of them that will return me more than this will. I originally bought it for the dividend but after some soul searching along the lines you speak of, I decided that it was not in my line of thought to own this either. I want stocks that I feel can make me 25% in the next 12 months and that is not here. IMO
Why do you prefer the mREITs? When mortgage rates are rising, the book values will drop. NLY doesn't even like the Mreits business. That is why they are buying back shares and diversifying. They don't want to buy any more 3.5% mortgages. What are you going to do when you are leveraged 6x and mortgage rates go to 5%? The book value will continue to decline. What happens if Fannie and Freddie get fazed out along with the government guarantee of mortgages? We've seen how NLY's overpaid (100 million for top five directors) management has done managing commercial mortgages (see CIM's five year chart). Will historical performance continue without the founder? I bring this up because I sold NLY, but continue to reinvest my PSEC dividends.