Because it is a leveraged ETN, most brokers make you 'accept' that it's high risk with some form. Give them a call or web chat and they should be able to mark your account as 'accepted the risk and knows what they are doing' and then you will be able to buy in.
I'm not exactly 'old' being in my early 30's and I've done better with income stocks. Growth stocks are really luck of the draw it seems. You either buy in to something you never heard of, and hope and pray it gets bought out or cures cancer.... or you over pay for an IPO that drops 80% 2 weeks later... or you own 2 shares of google and 4 apple cuz that's all you can afford to buy at $500/100+ a share.
I'm in some blue chip blends, growth, and a lot of high income stocks and etn's, and the ones that consistently show me the money are those that are paying div's right now.
So, while long term, I would tend to agree with you that the cash funds are more 'safe' and a younger person should be going for more growth, the return in my portfolio tells me otherwise.
But, maybe i've just made bad choices (which is highly likely lol)
So, they lowered it 'to be safe' given other things happening in the market. Special distributions may show up, as they are required to pay out most of their profits by SEC rules. We may have a REAL nice 1-time payout in 2015 as a result.
And since the board owns a lot of shares, it's in their best interest to make money too.
Taking a loan out is pretty stupid IMO, especially for a non-pro. Some people got rich playing arbitrage, but a lot lost their shirts too.
Is there money to be made elsewhere? Yup. There's money to be made everywhere. But, there's also money to be made right here.
If I were you, I'd simply forget about the fact that you even own it. Put new money in other things to diversify yourself a bit. You shouldn't, according to pros, hold more than 7-10% in BDC/REIT type stocks.
This won't go to $3 unless something serious at the world level happens (and then, the rest of the market is coming with it too).
Insiders own a LOT of shares, and they bought a LOT more in the fall.
The key lesson here is-- you're young. Be patient. PSEC has been one of the best performers in my portfolio for the past 5 years. My cost basis is in the 11's too. And I don't care :) those 11 dollar shares earn me as much income monthly as my 8 dollar shares do too. And if you can help it, never sell for a loss if you can't write it off.
You only lose money when you sell. Hold, drip, and you almost can't lose so long as they pay a dividend out.
Having the value go down is actually a good thing, temporarily-- you get to buy more shares with the drip. As it goes back up again, you now have more shares to collect a div from than you would have if it stayed at 11, or 13...
As other's said, interest rates rising (probably not happening anything significant this year) and the spin offs are the unknowns for this year. I don't see this having massive price movement. But I'm not here for the price, I'm here for the div.
I think, given your age, you should hold it and wait it out, even though other holdings have, on a value basis, out performed it. If you've been dripping the whole time, you should have a decent amount of shares now ready and waiting to pay out for the next 25 + years of your working life.
I have been a long holder of other UBS notes like MORL and am now 'diversifying my risk' out to these other holdings like CEFL. I just ordered my first small batch. and await the DRIP to my ROTH :)
I am pretty familiar with these ETN's, I hold MORL and CEFL from UBS already. I have them in a roth, so the tax worries are easier for me, and as such, i'm looking for long term DRIP'ing style funds. i'm going to keep a close eye on this one and get ready to make an entry soon
I've been looking to enter this holding since it was in the 70's. every day, i'm glad i waited. What do you guys think, is the floor on this tied to oil closer than anything else? if oil stabilizes, this should, in theory, also stabilize as well and present a bottom to get in with a moderate (for my poor self) position?
a few weeks ago, i was getting ready to dump. i've been a bag holder for YEARS now... i all but forgot about this one.
maybe there's some life coming back here now with this buy. I'll sit on it a little longer.
i'm pretty sure the 9/1/14 and 12/1/14 blips are reporting errors, and it was never actually there..
it's misleading though, as a quarterly payer moved to monthly starting this month (thus, only 1/3 of what last big pay out would have held) and NCT won't make this payout either, due to late payout for jan, but feb should be up a few because of it. IMO, there's still nothing better on the market.