A few more months and we might run head on into tax loss selling. Something good has to happen here, and soon. Buyout??
frig.....you are correct. ATM use is just like doing numerous, small secondary offerings. It is all about what is done with the proceeds.
PSEC just running into the law of "large numbers." Raised too much money and cant find places for it quickly enough. Similar to FSC late last year.......a case of indigestion.
Other industrywide concerns also at play. Falling realized rates due to more competition. Worse credit risks as most of the better deals have been done.
Watching PSEC, now about 10.50. Not sure what it would take for me to buy this. Next declaration date should be early in November along with their Q 1 earnings report. I think there's a greater than 50% chance they cut the div to the .09 area at that time.
Kel......not holding any BDCs right now
What exactly is their "normal earnings stream?" When was the last time that NII (not Net Income or EPS) actually matched or exceeded the distributions paid out in any quarter?
NII of .25. Hurt mostly by lower origination income. For the 1/4 originations fell from $1.3 billion in the March 1/4 to $444 million in the June 1/4. This resulted in about $19 mil less in loan structuring fees or a drop of about .055 cents per share.
Mentioned that distributions are declared until December at .11+, but didn't comment as to their ability to continue that rate or not.
NAV closed at 10.56 a drop of .12 from 3 months earlier.
Total number of loans.....143......Total $$ of loans......$6.254 billion.
***Anyone wonder if PSEC is just getting too big? Obviously couldn't find places to put all their money to work in the quarter. Something to keep in mind for other BDCs. This industry has exploded in size in the last couple years. Has to be alot of competition out there for loans and what interest rates and terms are achievable. Terms probably not as good as a few years ago. Banks take the better credit risks and leave the dregs for BDCs and junk bond funds.
PSEC down afterhours to $10.64 -.34
Not a holder of PSEC or any other BDCs at this time.
Phil........since Jan.1 my lowest cash position has been about 50% and that was on Jan. 7th. All year to date my cash position has been mostly in the 60 - 75% area. I've tried to make up for that by taking aggressive positions in biotechs, BDCs, ETFs, etc. Have had good success in spite of some recent stumbling due to losing on short ETFs.
Year to date (as of this moment) I'm up about 4.7%. Cash position right now is 71%.
Have no desire to do a big "giveback." Too old for that.
Ready to sail..... get your cheap tickets now. Was only $36.25 (equivalent) for 3rd class steerage.
Not sure when this market will top out......today, tomorrow, next week????
When it does, it will be ugly.
The cocaine for this market is super low interest rates. The FED is the co-conspirator along with CNBC and all the other pumpers.
We've all seen this before in other forms.......2000......2008.....some of us even in 1974, 1982, or 1987.
When the ship rolls over, it will go down fast. Just a word of caution to the less experienced here. This will end, just not sure when. I will continue to raise cash.
Just my opinion................................Kel
Haven't bought yet. Just looking into it over the weekend. Holding other biotechs......GILD, AVNR, CCXI, ATHX, and RGDX. Also looking at ARIA, haven't bought that yet either.
Chart looks like it's basing. Angry sellers are gone. Enough cash for a few quarters and more can be raised. Not far from breakeven operations.
Was here a few months ago and luckily (really!!) sold out @ 4.08 (July 3rd) just before the big fall.
Kel...............will be watching more closely
I have Obamacare and get a $400+ per month subsidy. I'm what you'd call asset rich (somewhat) and income poor. So now I have a nice capital gain with GILD that I must let ride for possibly 2.5 years. Then I'll be age 65 and can qualify for Medicare. If I realized my gain it would really mess up my monthly subsidy.
Being on Obamacare causes one to do everything possible to limit their income. I'm already invested in some CEFs that hold MLPs to defer taxes to the future (FEI, FPL, NML, and CEN).
Anyway, my question is..........GILD is doing great now. Competition in the Hepatitis area will be coming. Will this be a good holding for another 2+ years? Will they be able to hold off the competition, bring new products to market, and continue to grow EPS for another 2+ years?
Thanks for your thoughts and comments..................Kel
OK. I found the info in the publicly released EPS report from the same day.
I think their language is very vague. In one place they call it the "Permian trust." In another they call it by its proper full name and stock symbol. And they mix that discussion in with their discussion of other SD operations. I'm not totally convinced of exactly what they're referring to.
I have no current investment here (did in the past) so no $$ in or out of my pocket either way, but I do always strive to fully understand this type of report. Should certainly concern anyone that holds PER.
Sounds like (from reports) that the world is awash in oil right now. Some feel the only thing that's keeping it above $80 (WTI) is all the political uncertainities. I've been avoiding oil stocks recently.
Lost about .6% this week. SPXU (ETF that shorts the S&P 500 X 3) is the culprit. Have a good weekend everyone.
Cash on hand about $10.2 million.......ready to drill, let's get going
Property and equipment value .............$35 million......growing every 1/4
Debt........$25 million.......pretty big number.....have to grow and quickly. Spend that $10 mill carefully.
350 Mboe is equal to more than one quarter's production. Are you sure about that number? I did some searching (Aug. 8 filing mainly) and couldn't find that reference.
Kel.......a watcher, not a holder