That was not my point mr.phil. Anyone who buys BDC's should not do so as a daytrader. BDC's are a buy and hold and if fundamentals stay the same the pps doesn't matter as long as it pays a dividend and the pps stays the same. If it goes up just more ROR. Hold it long enough and all your money you used to buy the shares will have come back in the form of the dividends. Then everything after that is gravy both dividends thereafter and when you decide to sell.
Another measurement to take a note of is the price to sales. Generally if this number trades at 1.5 it would put a caution sign on EBR but it is only at .42, this means considering equilibrium is 1.00 this also is trading at a discount. In order for this indicator to get to nominal, the pps would have to get to around $8. Another reason IMHO this stock is a buy.
I agree to a point, that being once they meet the dividend once more, then we can move up as we stabilize. However, also keep in mind that as they cash out on some investments that too will help the NAV on a capital gain means. A target is meant to be within the next 12 months. That said $11 short term is reasonable and $12 in a year doable. $13? Well PSEC would have to have some real money come in from the sale of some of its investments or some of their companies going public I would think. JMHO.
ray, even if they trade the same for the next three months the dividends will get you to break even.
I don't reinvest dividends as I like to be diversified by taking the dividend and investing in other companies or other BDC's that choose different industries to finance.
I think the most premium PSEC had recently if you consider two years recent, would be 1.12 when they traded at 12.25 just before they issued equity.
After our fill of watches the past few days we come in today to see VVTV moving up once more to the high end of the long and enduring range we've been in for some time now. So can we get to that top and if so can we finally break out? Or will we just move down again to the bottom of the range. If we can hold the gains today our chances improve. But if not then we know it is just up and down again.
I will say one thing for this new team, if they would start a monthly sales report they could start a new trend in the industry. Or just follow the two leaders as always. C'mon get us to at least 24/7 programing faster MB.
We just need a hedge fund activist to get involved along with the institutional holders to cause change. So we make our call's and wait for now. It will come IMHO.
They are required to file an sec form indicating the results of the proxy vote. But until action is taken to replace the CEO and some BOD members there will be little if any change, loses will continue. With the Russia issue it will only get worse as the sanctions deepen which could prevent deliveries on future back log sales.
That I well know, I do my own research and have my own methods (lots of spread sheet formulas etc.). Do not proclaim to be right every time but do learn from mistakes and have adjust my formulas over the years. Have had some success (retired at 51). I have also had some disasters (911 had 7 companies go BK). I do this full time now spend on average 8 hours a day (including weekends) and profess that I am a market junkie. I enjoy researching and reading what companies are doing and new products coming in a diverse field of investments. I find it really interesting in a societal change way, to see all the new innovative ways the worlds populations come up with to benefit mankind. With PSEC I see them as a tool for some of these types. Now I also am not one to put all their eggs in one basket, thus I am diversified. But the bottom line is I have fun. Each to their own in what they enjoy..., I enjoy the markets and I might add all around the world.
EBR is trading at .18 of book value. This means they have a discount of 82 cents on the dollar in value. Now if there isn't any glaring reason why they trades so low, then there is a lot further upside to the pps. Is it worth the risk, YES that is why I hold these shares (and collect the dividend along the way each year).
I love it when dumb money sells. It gives the smart money opportunity. Can the dumb money traders get it below $6 please. "Papa needs a new pair of shoes" with cheap shares, your shares. One has to love this IMHO. Especially once CVS stops selling cigarettes. I can't wait to see those October sales numbers from CVS reported in November..., just in time for Christmas. Yep, you got to love it. Hey while I am posting, the pps is moving up. Now dumb money get those sell orders in please.
I guess some agree with me on PSEC. Their target is $13 they are more aggressive with that target than I but I sure would like theirs to happen. Mine right now is only $12.
PSEC has a history of vetting well to whom they get involved with and protect themselves well if something were to go wrong. Now can they protect themselves 100%? No but no lender of any type can. But if you look at BDC in general the default rate is less than 1% and that is as close to perfect one can get for an industry dealing with lending and stake ownership. There will always be risks. It is all about managing those risks to minimize loss...., PSEC is the leader in this industry of BDC's and has the best management, thus why we pay a bit more for it. I am fine with that. But also watchful that if destruction to the NAV were to persist, then it is time to move on. That time is yet to come for me, I will continue to hold long term right now 10+ year further.