What's not to like is the huge discount to NAV.
I think the Ares folks know what they're doing, but the market simply abhors closed-end bond funds these days.
ARDC is absorbing ARMF to save on expenses. I hope something positive comes out of this. If not, Ares should really think about buying back shares at such huge discounts.
Late August and Capt. Hoarder and gang haven't announced the measly dividend.
All the market turmoil and criminal investigations must have their britches all bunched.
So earnings were over $8 per share for the quarter, but book value only went from $436 to $437. I understand that it's way more complicated than that, but generally the book has gone up somewhere near the quarterly earnings.
The only thing I can see on the balance sheet that changed was "Other Shareholder Equity", which went down by approximately 23MM.
Anyone understand this?
Other Stockholder Equity 27,410 50,792
Aug 24, 2015 SUGARMAN STEVEN Officer 10,000 Indirect Purchase at $12 per share. 120,000
Aug 23, 2015 GROSVENOR JOHN C. Officer 709 Direct Disposition at $12.32 per share. 8,734
Aug 21, 2015 SUGARMAN STEVEN Officer 25,000 Indirect Purchase at $12.22 - $12.29 per share. 306,0002
16% discount to NAV.
Where are the buyers??
Yield now over 10%
Nuveen really should be buying back shares at this huge discount. It is really an insult to shareholder to let this go on much longer.
If you compare ANAT or NWLI to other life companies they are selling at well-below market valuations, especially on a price-to-book basis. Just look at SFG which was recently bought out at over 2x book value. ANAT's book is around $168 and closed Friday around $105, which is approximately 62.5% of book. NWLI's book is $437 and closed at $236, which is approximately 55% of book.
I would not expect either to be priced at 2x book value, but it would not be unreasonable to be priced at 1x book at some point in time. That's what I mean by realizing the value.
Oops. Found the Brazil paragraph:
Separately, the Brazilian authorities have commenced an investigation into possible violations of Brazilian criminal law in connection with the issuance of the Company's insurance policies to Brazilian residents, and in assistance of such investigation a Commissioner appointed by the U.S. District Court for the Western District of Texas has issued a subpoena upon the Company to provide information relating to such possible violations. No conclusion can be drawn at this time as to the outcome of this investigation or how such outcome may impact the Company's business, results of operations, or financial condition. The Company
continues to cooperate with the relevant governmental authorities in regard to this matter.
I think they need to have the Brazil investigation resolved before we see any price gains, but who knows? I see no mention of the investigation in the 10-Q filed on Aug. 7th.
The problem with all the mergers is that the pool of potential buyers is slowly being reduced. Sumitomo, Dai-Ichi, Tokio Marine, and one other (can't remember name) have all made US acquisitions in the last year or two.
Of course the Moody's would probably never sell ANAT or NWLI. Ah, but one could only hope.
I also like AEL. They had a very good quarter but then came to market with new shares. That's another one that some day could be gobbled-up.
Yes and the expenses were higher than expected. They also are spending more money as they try to grow and that seemed to be not expected either. And the company has not fully deployed the capital that was raised earlier in the year.
All in all it appears that it was a confusing quarter and was disappointing, but was it that bad to take the stock down (as of today) 17%? And my other post noted that the stock was going down a week before the earnings announcement, so obviously someone had this information before it was publicly distributed.
Yeh I almost bought some KCLI recently when it was trading around $43, but with the small cap volatility in the last week or so I didn't have the guts.
I had picked up some AEL a month or two ago and made a nice trade out today on the run-up after the good earnings report. It will probably keep going up now that I'm out.
What a freaking debacle. Down 13% in a week. The management must have really #$%$ someone off to have this kind of a negative reaction to a good quarter.
With this kind of action it's no wonder why individuals like us don't trust the market.