By that time, you may have sustained a loss from which it may take years to recover, if ever. Huge gamble. I sold days ago and will keep an eye open to see what happens. I may or may not buy back in.
I also am waiting. Been burned so bad in this so-called bull market, not up for more losing. I have a feeling they are going to take the part that generates the most income out of PSEC so they don't have to pay it all out in dividends.
How is that patience doing for you? That's how I got conned into losing 99% of my money with help from a 1 for 10 reverse split. Yeah that was fun. Management are crooks and not to be trusted.
You could be right. Lord knows I don't have a good record with gold/silver stocks. Lost 99% of my money on this and others. But I don't trust this management at all. And I am done with mining stocks of all types.
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.