I know that I'm criticized at times for holding a large cash position. At times, doing that enables me to take advantage of opportunities like FSC today. I was actually waiting in the weeds for this. I didn't think they'd pull the trigger on an offering this quickly though. Cash still @ 59%.
Will be watching Friday's open closely. Share offering plus x-div......could be the time to pick some up below FSC's 9.81 NAV (Mar. 31 number).
I think that's Jep that says.....you're in the DANGER zone. But yes, I'd be careful as the group has recently rallied and many BDCs are back above their NAVs. Might be one more round (this cycle) of secondary offerings coming.
Not currently holding any BDCs.
Any thoughts on that $400 million of debt they locked in @ 4%? That's not much lower than Floaters are yielding right now. Maybe they are betting on higher rates. Then the 4% won't look too bad if the Floater yields rise. Not a holder, just watching.
Distribution is unchanged for the next 3 months @ .095 monthly..
July......x-div 7-16.......pays 7-31
Aug......x-div 8-14......pays 8-29
Sept.....x-div 9-16........pays 9-30
Kel...........a holder of GLO
I really lucked out. Sold early yesterday (July 7, Monday) at 2.05. Actually made a few $$. Moved the funds to ONNN, a chip stock.
Unfortunately for me I'm not currently one of them. With the afterhours close of 10.19, FSC may now be at an approximate 4% premium to its NAV depending how it trades tomorrow.
Any fear now of a share offering? Has been quite awhile since it traded this high over NAV (9.81 as of March 31). Will be interesting to watch.
Added @ 13.015. NAV is over $15. Currently pays .095 monthly. They should declare another 3 months of distributions sometime this week. My opinion is that the dist will be unchanged.
Phil.....please read my post a little further down in this thread. You'll see that we are in agreement that CFP and ARR (and similars) aren't equities to hold, but ones to trade if you have a good feel for their movement.
I held ARR for a few days at the start of 2011 as a quick trade. At that time the dividend was 12 cents per share. Has gradually fallen to now 5 cents per share. They also have about $9 of debt for each $1 of equity.
ARR, like CFP might be OK to trade if you can catch the swings up and down. I don't consider either anything I'd want to hold in my portfolio as a core holding.
J-man is correct in being skeptical of CFP (at the very least). They just hold a portfolio of mostly other CEFs. A good chunk of the 20% yield is just getting your own money returned to you, then the NAV (net asset value) declines over time significantly. The symbol for their NAV is XCFPX. Look it up and observe how it has plunged over time.
That's why I have 200+ trades so far this year. I buy something that looks good and has a nice yield. It goes up quickly by the value of a few months of dividends and I think, why bother keeping it. Book that profit. Getting spoiled. I know it won't always be this easy to make money.
It looks like "the market" may take over interest rates from the FED. Notice today how a good (not great) jobs report pulled the 10 year Treasury rate up to 2.645%, up about 5 basis points. If the economy continues to improve, 10 year rates will continue to rise. The FED can't back track and re-expand QE if the economy is improving.
Agree with J-man about "stealth" inflation. Just got a notice today from ATT that my DSL fees are going up 10%+. My utility is also trying to push through significant electricity and natgas base account fixed charges.
Will be deciding over the weekend if I want to buy some short ETFs again soon. I'm 79% in cash right now with my account up 6.63% year to date.
Everyone have a safe and enjoyable weekend with your families,