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Chimera Investment Corporation Message Board

b_hummell 6 posts  |  Last Activity: Jun 10, 2014 12:56 PM Member since: Jun 18, 2010
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  • b_hummell b_hummell Jun 10, 2014 12:56 PM Flag

    Per PSEC Mgt, if give in or lose SEC appeal, NAV and income would rise because Mgt fees would be reduced. As several sources/articles have suggested, PSEC Mgt is acting greedy re fees and put that above interests of shareholders. PSEC trying to protect as much as the $200 million in fees they want to earn this year. Had PSEC amended their financials when SEC requested ( and not delayed), possibly none of the lawsuits would have been filed. If PSEC continues the SEC appeal, and if they lose any of the lawsuits, payment of any settlement or judgement will eventually come out of the pockets of the shareholders. Another stock I own is being sued and already they set aside 3% of the NAV on each share as a reserve to pay if they lose with a comment that the "reserve" could be increased. Will this happen to PSEC? Has PSEC gotten themselves into a trap? If the do amend the financials per SEC request, will the law firms use that as an admission of guilt? Could it be a no win situation at this time? Still, I'd like to see the financials amended per the SEC request and hope the investors then have more trust in Mgt to look out for it's investors vs it's fees first. Recent article indicated another BDC decided to put it's investors first even though their Mgt fees were reduced. That's how it should be.

  • Reply to

    PSEC Management should do this now

    by fire2000k May 30, 2014 4:39 PM
    b_hummell b_hummell May 30, 2014 7:16 PM Flag

    Good idea ...but will they? I believe eventually PSEC will lose their appeal and will have to comply with the SEC. It would be good for the stockholders,.. increased NAV, income, but Mgt would get reduced Mgt fees so maybe they will drag this out. Maybe they think if they comply with the SEC, they will be in some way admitting something was done wrong and will be boosting the lawsuits? PSEC should not have done the accounting the way it was done because in some analysts opinions, they put their fees above shareholders interests .PSEC won't be issuing new shares for a while, so after this accounting issue is resolved, I expect that NAV and income will rise temporarily if only because of the amended financials, then income will drop due to not raising new capital to invest. How long can the dividend continue at over 100% of income? Probably until sometime early 2015. Then, the income catches up, or the dividend gets cut. Re the lawsuits..another of my investments was also sued & eventually the reserved part (3%) of the NAV for a possible settlement even though they claimed no wrong doing. That stock price has dropped like PSEC has.

  • Reply to

    serious question for PSEC

    by bernie.ecclestone May 28, 2014 10:38 AM
    b_hummell b_hummell May 28, 2014 10:59 AM Flag

    So far, a drop of 11 cents for the ex dividend plus another 11 cents drop. Too many questions right now.....accounting, SEC, now a class action lawsuit that was actually filed ( not just investigated) and PSEC is a wounded animal right now & the buzzards are circling. It appears the smart investors sold yesterday near the 10.28 high. I also hold some PSEC stock and will ride this out although expect a bumpy road for at least 6 months to one year.

  • b_hummell b_hummell May 15, 2014 1:46 PM Flag

    Personally, I take no pleasure in learning that some investors sold and took big losses due to the flash trading. I didn't sell so fortunately my shares have recovered back to today's 9.93 or so.

  • b_hummell b_hummell May 15, 2014 1:40 PM Flag

    I already spoke to them re the pending class action lawsuit in regards to Prospect. Although the Yahoo article indicates a 0.54 loss down to 10.20, the actual loss has been much greater...depending on whether or not an investor held on to their shares or sold some/all and at what price. I see that this morning has risen back up to 9.93 Playing devil's advocate here..unless an investor sold shares, then no actual loss yet and stock could recover. Only have realized gains/losses on sold shares. Second issue is that if Prospect wins appeal, then did they really violate any SEC rules. For me, I took some realized losses and reserving my right to join a possible class action lawsuit. You all should decide what's best for you.

  • With earninsgs of only 31 per share, removal from indexes, and accounting issues with SEC on their back, possible mid to high 9's soon.perfect storm and once investors lose confidence in Mgt re financial statements accuracy, it's goodbye.t. How many investors will trust them again after now incurring big losses? PSEC will appeal SEC and drag this out with uncertainty then lose eventually and the truth re earnings will appear on the restated financials. I really trusted Mgt but no more. Accounting to build up Mgt fees at the iexpense of investors.

CIM
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