Good advice I'm sure although I don't know why PSEC is not a good long term investment. However since I am 71 years old and retired, it isn't exactly tailored to my situation. I had hoped to have a nice little (really little) portfolio to leave to my granddaughter that would increase in time. She won't put a dime into the account I manage for her because she doesn't believe in gambling and after my record, I can't fault her for that. Common sense is anything but common.
O.K. so PSEC will be "losing" some great assets by selling them as spin offs. The original shares should then be worth less (by the amount of the worth of those spun off assets minus any monies received by the sale). Then stockholders will have to pay again for the assets they had already purchased when they invested in PSEC (if they want them without the guaranteed dividend %) and the dividends will have to come from a smaller base. Have I got this right?
I decided to call Scottrade and ask them and they said they didn't charge those fees the companies that did the reverse split did. So not only did they kill me with the RS, they charged me $20 extra to do it. Well, see if I ever buy another gold mining stock! What's a gold mine ? - a hole in the ground with a liar at the bottom. I was surprised because they sold the idea as a way to bring up the pps and obviously I was (am?) dumb enough to believe it. And yes I am new to investing and not rich at all, just dumb enough to hope to get closer to rich by investing (perhaps its more like gambling). It did keep me out of the casinos for quite awhile. There is nothing "not right" about this post, just not right about me, I guess. Although only actually 50 shares, it still is most of the investment money I have left, so maybe devastation is too strong a word. It did feel pretty devastating when I saw I had one share I paid $299 for selling for $2.54 (etc.). Anyway now I know it wasn't Scottrade. Yes I am still worried about the announcement, I guess just a gut reaction from the past experience and not knowing what to expect. I have wondered why the price of this stock didn't go up and all I could come up with was that people were suspicious that it was "too good to be true". I told my elderly neighbor about it when she was telling me how her savings were going fast because of the interest rates being so low. I don't know if she bought or not. Anyway, Minnyfan, you got me to spill my guts and air my dirty laundry. And you were correct, something wasn't right.
I was unwise enough to buy some gold mining stocks a couple of years ago. Management didn't like their pps so they had a reverse split (yes, all of them). Two were 1 for 10 and one was 1 for 8. The price not only didn't go up but fell. I lost 99.? % on those but on top of that Scottrade charged me $20 each for reorganization fee. I only have 40 shares of PSEC (my only pick that wasn't devastated so far) - I was thinking of buying more until this announcement and now I am seriously worried. The pps has already decreased some but that was o.k. but I just don't know if I can stand more devastation and more reorganization fees.
So this is about what I came here to try to learn. Unfortunately, this doesn't clarify anything for me. Can anyone tell me in plain English what is being planned and how it will affect the share price or the shareholder?
I suggest you google Mr. Drover and decide for yourself. I can't remember now what I came across but I do remember I didn't think it was good.
It seems like a great deal to me. So what is keeping it from advancing? Is it that it seems too good to be true or is there something more substantive?
I posted some on his past record and it isn't pretty. Do some research.
well don't shareholders have a vote? Why aren't they making changes, or maybe better, suing these crooks. I sold at a 99% loss when they put Drover in. If I had a lot of money in it, (I didn't, thank goodness) I might do otherwise, not sure. Many miners did 1 for 10 or 1 for 8 reverse splits effectively devastating shareholders' accounts so it isn't just this one. They mostly all seem to think it is o.k. to rape shareholders.
I have been very very badly burned on all my gold mining stocks over the past few years. My inclination is to believe they are mostly all "pump" assets, and yet I am tempted yet again to try to get rich quick. Only thing holding me back is my scars. (and maybe common sense)
This guy has a track record that has to be worse than Rodriguez. Out of the last 3 companies he worked for, only the oldest has the same name (Kinross). From there he went to Glencairn which was acquired by Black Hawk Mining, a company he used to work for. Due to inappropriate strip mining for the area, they were at risk of causing millions of dollars' worth of environmental damage and asked to cease operations which they did and abandoned the mine. No clean up was done as far as I can tell. The name was changed to Central Sun Mining after a 1 for 7 reverse split (sound familiar?) Then he went to Gold Hawk Mining and took the stock price from .50 to .03. The name was changed to Oracle Mining and it now mines copper and is at .10. You know what? This sounds like a bunch of good old boys living it up on the suckers' dimes (and they did, you can be sure). As for me, I have had it with miners. I'm selling and will never buy another. Lesson learned.
Thanks for the advice, I really don't know what I am doing (besides losing money). I started buying stocks to keep myself out of the casinos and I have done about as well at it as I do at the slots, which isn't pretty. I would be giving any profits to my granddaughter if there were any. I do own PSEC in her name that pays nice dividends so maybe I should put it in her husband's IRA. I also have a gold stock that pays a very small dividend but 15% foreign tax is taken off the top. I used Scottrade and they even make these reverse splits worse by charging me $20 "reorganization" fees.
I got my shares because I bought Sandstorm Metals a couple of years ago. My shares were decimated by falling prices and 2 reverse splits and now I have 2.28% of my original investment left. lol They aren't worth enough to bother trying to sell them so just holding on for the learning experience. Something similar happened with my gold and silver mining stocks. Don't know if this is a scam but I sure did learn what they meant when they said "risky".