I know quite a bit about PSEC, especially that it's not a REIT. It's a BDC. They also may have reached a little to far for yield in order to maintain their generous yield. That's an opinion held by me and some others, but certainly not by everyone.
I somewhat agree with your "immediate annuity" statement. True of many CEFs.
Rick Santelli, on CNBC Tuesday did a segment about the massive buildup of subprime auto loans. He felt that this could be a problem in the future, perhaps as severe as the housing loan crisis was. Many new and even more used cars are being sold with high interest rate loans to marginal borrowers, with some loans now stretching out to almost 10 years.
If any BDCs are picking up these loan packages to "juice" their portfolio yield.........well, we all know what kind of problem that could cause. Seems that the government's high standards now for housing loans has created an unintended consequence.
Can't buy a house with poor credit, maybe just go buy a new car with that same poor credit.
Bought today @ 3.80. Was here several months ago at prices similar to current. Profits look good and revenue picking up.
You still in? Just bought some @ 3.80 after being absent for several months. Looks OK here as a new base is pretty well in place (I think). Turning some profits with good revenues. Will see how things progress.
Sold some STLD (Steel Dynamics), ONNN (chips), and NML (CEF that holds MLPs) all for profits. Did buy some CFP @ 4.61 as a play into the July 11 x-div date. Hope to sell pre x-div date.
Lucky here in Green Bay. Everything stayed South of us. Flooding in Madison and East to Milwaukee. More storms headed for Chicago area.
All that trading is done in an IRA account. No margin there. I do have 2 regular accounts (smaller) , but I don't trade much in those. Mostly total return positions in those like ABT, VZ, LOW, GILD, GOOG. Also 3 CEFs that hold MLPs (FEI, NML, and CEN) that pay monthly, with most of the distributions being ROC.
Need to control my taxable income due to Obamacare subsidy for a few years.
Today is June 30 and the div announcement will likely be after the close. Stock is up 9 cents to 20.17 on volume well above average. Probably due for the div increase as the NAV has done well. We'll see I guess. Holding NML in 2 non-IRA accounts. All bought below 19.00.
Finally broke that 2 cent range of 4.59 - 4.61. Has traded down to 4.58. Have to wonder if CFP might run up a little as the X-div date of July 11th approaches. Might be worth a gamble on that basis alone.
Don't have to be a member to read, learn from, and enjoy them.
mlps.........full of good info. Many knowledgeable posters. Very busy board.
income investing.......also a busy board. Much good info and interesting side topics at times.
closed-end funds.........good CEF discussions
business development companies..........BDC discussions
I've been going to IV for many years. Am a member and post here and there, but not real often.
If this price below .90 holds on Monday morning and there's no news (last day of the 1/4).....I just might have to add some shares. Will be interesting to see if the late weakness from Friday carries over to Monday's open.
Talked about solar stocks.......seemed to like SPWR most of all. Never even mentioned CSIQ. I thought that was strange as it's one of the bigger players. Any thoughts on that?
Thanks Tom.....always appreciated. Anyone keep a moving average of Nuedexta sales? I did for awhile soon after introduction, but stopped when our "numbers" source dried up a few years ago.
Tjdevlin........I'm ahead 5.25% year to date. Am currently 68% in cash. I don't think I ever fell below 50% in cash since Jan. 1. Sometimes as high as 80% in cash. My desire to aggressively trade (at times) creates the need to always have a fair amount of "settled funds" on hand. That's part of the reason for my large cash position. Otherwise, just don't have the desire to give a bunch back to Mr. Market.
Have a good weekend..................Kel
Sort of like the old prostate "finger" test. Had a few of those.........
CFP is a religion, not a stock. That's the feeling I get from reading many of the messages on this board. You are either a "believer" or not. Reminds me of PSEC, another very high yielder. Enjoying the observing, not a holder.
I made some moderately negative comments about CFP on that board. Was criticized, but not real severely. Looked at it a lot, but wasn't impressed, especially with the long term trend of the NAV (symbol XCFPX). Looks like the big yield is just getting constantly "sucked out" of the NAV.
Might be a play of stock price vs NAV, as the premium to NAV is smaller than usual (near 52 week low) right now. Looks like pulling teeth for a few cents here and there. Not much appeal to me.
J-man..........a good indication of what little substance those lawsuits had.
Bought some ONNN (semiconductors) today @ 8.90. Has a 2105 EPS estimate of .98 (.80 this year).