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Cullen/Frost Bankers, Inc. Message Board

factoids2002 1 post  |  Last Activity: Sep 16, 2014 1:58 PM Member since: Dec 18, 2002
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  • Reply to

    NAV Drop...

    by your.jim72 Sep 15, 2014 7:56 PM
    factoids2002 factoids2002 Sep 16, 2014 1:58 PM Flag

    I am of the opinion the FULL does not have the metrics to justify selling at a price above NAV. I was expecting a price drop today. But the price is up $0.14 to $7.22 as I write this. There was the good news about the expense drop. But there was bad news about (1) the falling NAV; (2) NII/share well below dividend/share; and (3) a falling yield on portfolio. If the market was metric aware, then the price SHOULD be falling towards its NAV of $6.38. BDCs that sell above NAV have rising NAVs, rising dividend, rising NII/share, and well covered dividends. I do not see why FULL should be the exception.

    I see the price action for today as evidence that "the market does not know what it is doing". If it is the case that 60 days from now FULL is selling closer to its current $7.20 instead of $6.40, that that will be evidence that "I do not know what I am doing".

    I disagree with priviet's assessment that FULL is "pretty solid" due to the three faults listed above.

CFR
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