i sold my remaining shares into the strength today...love TCAP but i can't help but feel that an SPO is lurking that can take the price down 5% in a heartbeat.
i will be a buyer on weakness, but at this premium to NAV and with a large shelf sitting out there, they'd be crazy not to raise cash here.
I have bought 3 times in the past. My C/B for the 3 combined is $21.44. This recent drop just looks like a buying opportunity to me. Love the dividend. Solid company just when we need it.
The SPO in Aug 2011 saw the stock drop, however after the SPO in Feb of this year the stock basically stayed flat and made a substantial move up. As noted above this would be a good time for an SPO given the run up in price, and potentially offer a lower entry price.
I think the original poster may have been prescient. The market hates SPOs, and for a trader, they represent risk. For a long term investor, if the SPO is priced fairly and the company isn't trying to raise money to cover a scary cash flow problem, it's a good sign that the company has additional capacity to use the new capital at above the cost of that capital.
If you're a trader, you're on your own. If you are holding for a longer term investment at 8+% yield and rising, take a nap and quit checking the quotes so often.
agree with the dilution comment, since SPO would be highly accretive (not dilutive) to NAV at these levels. but it would definitely send the share price down temporarily until it prices. probably smart to not even bother trying to time these things.
i am amazed at the spike and volume today. what's new exactly? why are there so many buyers at sub-8% yield when this was hanging around $20 (10% yield) last month? is this a yield chase bounce? either way, at $24+ the yield is much lower than bdc peers, even with the new 0.50/qtr div rate.
TCAP has been a most excellent ride these past few years and i hope it continues for those of you still on it. great company but i think the stock is fairly valued/overvalued at this level. Stifel thinks so too and they have a nice record covering bdcs.