I truly hope the day will come when MOSY shareholders are rewarded for their blind faith, but I'm actually amazed at the loyalty of the true believers.... I owned MOSY for 2 years awaiting some, nay any, signs of traction in its products via increasing revenues and every quarter the story was always the same - Len's pretty sure we're only a couple of quarters away from true greatness. Well, you guys have more faith and more patience than I, that's for sure... I gave up 5 months ago at 2.43... Good luck to the longs - I hope your trust, your diluted trust, is eventually rewarded.
Actually, this stock has done pretty much what I have wanted it to do - meaning it has been a relatively steady performer, not subject to large price changes. It's been more like the tortoise instead of the hare, but that's what I was looking for..... investing in SPE does seem to be an excercise in trust since they don't even seem to file quarterly reports no less leave much of a footprint as to what they're doing, but so far, it's been an OK performer. My largest complaint other than the lack of information available is one you won't experience and that was how they handled the retirement of preferreds. The timing of their announcements was detrimental to shareholders as I remember, and I thought it could have been differently easily, but I don't really remember the details now. But that's done. So all in all, you're right, you buy this for its annual distribution, not overall market performance. BTW, if you don't know, they post NAV weekly on their website on Fridays so you can at least track how they're doing NAV wise.
Sice - I'm curious as to why you say this about Goldstein, meaning how and where do you find out about what he's doing in the first place? By their own design, it seems as though even an investor can really find out practically nothing. Is there any source other than the what, semi-annual letters to investors? And I suppose the irony is not lost that he supposedly feasts on closed ends trading at substantial discounts when SPE itself is at an approx 10% discount.
What's wrong with this picture? Right now, you can buy 15 yr maturity TVE at a yield 208 basis point approx above comparable Treasuries or 4% YTM. TVE's coupon will RESET DOWNWARD on 5/1/15 provided the 30 Yr Treas is under 3.115% for the week ending March 26. With Treas right now at 2.34% that means Treas would have to move up by 77.5 basis points for TVE not to reset. IF IT RESETS, you can PUT TVE back to the TVA at par of $25 on May 1. With TVE now at 24.88, if you buy TVE and consider it a 5 month maturity you can get an annualized yield of 6% approx for the 4 month holding period assuming you put. I'll take that! And if it should happen to NOT reset, then you have purchased whats considered to be a US Treasury credit, the strongest quasi US Agency, at a crazy wide spread to Treas. It seems to me to be the kind of risk reward situation that works for me.
TVC has essentially the same characteristics as TVE but happening a month later, so the same argument can be made, but the risks of a reset not happening are greater due to the longer time before the reset date and because the reset parameters are slightly more difficult to achieve..
Thought I replied but I guess it didn't take...So even in nothing more than a stable economy there's lots of positives for SAR at this price level.. Love these under that radar kind of stocks... m now reading Sizemore's SA update article on Prospect for comparative purposes. will get to SAR CC transcript as well..
Thanks for sharing... Though I think many BDCs seem to be trading below NAV, I don't know that many are as much as SAR's 65%. I thought I figured the 22 cent div was only about 33% of of NII but either way, it sure seems as though dividends have to be going up dramatically assuming only stable business conditions... All good news... am now reading Sizemore's SA article update on Prospect.
With earnings out, it'e even tougher to understand why this isn't performing better..... At 14.75, SAR is trading at 65% of NAV with dividend covered by earnings by about 3x I think... Not bad... I suppose when compared to BDCs the yield is skimpy but 65% of NAV and increasing earnings? What's not to like?