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Resource Capital Corp. Message Board

lunco 103 posts  |  Last Activity: 23 hours ago Member since: Sep 3, 2008
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  • Reply to

    Can't find yield

    by tomm_foolery Apr 18, 2014 6:10 PM

    You can find all the dividend information on the FS Investment Corporation web site.

  • Reply to

    Why is FSIC down?

    by brfcareok Apr 17, 2014 3:21 PM
    lunco lunco Apr 17, 2014 4:40 PM Flag

    I wouldn't worry too much about the price for the next week or two while the markets try and decide what the value of FSIC is. Also, with a long weekend coming up and options settling today there were a lot of influences affecting the price although it wasn't really affected that much.

  • Where did all the volume go? Only 44K traded which is 1/5 of average but then too it is Easter week/weekend.
    I suspect we will see a return to more normal levels next week and that the bias will be to the upside.
    Wishing all an enjoyable Easter Weekend

  • Reply to

    BDC's: Is the selling by the indexes over?

    by adampf9418 Apr 17, 2014 3:06 PM
    lunco lunco Apr 17, 2014 4:29 PM Flag

    There could easily be another round of selling by those waiting to see if the SEC allows BDCs to be exempt from the expense rules like they have exempted REITs. It the exemption is made, and I suggest that it may well be, then I think you will see buying. If not, then selling, but not to the degree we have seen so far so the effect, IMO, will be limited.
    JMO

  • Reply to

    Why Do People Lie On Yahoo Message Boards...?

    by jerrymathers Apr 16, 2014 8:57 AM
    lunco lunco Apr 17, 2014 1:57 PM Flag

    skeetz1234...
    While I believe that what you say may describe many people, in fact it may describe most people, I have a hard time accepting that it describes all people. But to me, what is most important is if it describes me. While I fully admit that I am by nature competitive, I believe that I can change that nature and become a person who TRIES to always to do "the right thing at the right time for the right reason" and I am optimistic enough to believe that there are others, many others, who are also trying to rise above our human nature and become a better person who tells the truth, who treats others with dignity and respect, and who see the good in all people.
    Message boards present a forum where people can say what they want and in most cases what they say reflects much more on who they are than on what they know, especially those who use the freedom of anonymity to insult or demean others or to misrepresent in any manner. So, just as there are those who are trying to improve themselves and to help others, there are others who think only of themselves regardless of the cost to others.
    Wishing you the best

  • Reply to

    Bottom

    by johnsonjoel1 Apr 11, 2014 9:28 AM
    lunco lunco Apr 17, 2014 1:38 PM Flag

    ray...
    I am not very good at market timing and so I do little of what most people would call trading. I also tend to hold "winners" and sell "loosers". However, with RSO, for a number of reasons including how they maintained "a meaningful dividend" through the recession, I kept hanging on. In looking at charts for RSO for the past five years I saw that it went up quite well from 2009 to 2011. Then beginning at the first of 2011 the pps declined from $7.50 to $5.00 and has stayed in the range of between $5.00 and 6.50 from June 2011 to the present. During that time they have had one dividend decrease from .25 to .20 and has returned over 13% in dividends which is certainly respectable and why I continued to have RSO as my largest holding. Beginning in the 4th Q of 2013 when "core" earnings were reported I began to sell my RSO because it was not increasing earnings. After the most recent earning report I sold my remaining shares of RSO when the "core" earnings indicated a significant decrease. Should RSO start increasing there "core" earnings enough to support their current .20 dividend then I will likely be buying some shares but until then, even a 13%+ yield is not enough to interest me because without increased earnings I do not think that the dividend nor pps would/could be maintained. This time I want to see the results instead of acting on hoped for results.
    Wishing you the best.

  • Reply to

    Bottom

    by johnsonjoel1 Apr 11, 2014 9:28 AM
    lunco lunco Apr 16, 2014 7:40 PM Flag

    ray...
    First of all, my post above was addressed to johnsonjoel1 and was a response to a specific question he asked. I was making the point that RSO has not been that good of an investment over the past several years.
    As to you response to my post; RSO has had five dividend decreases since 2008, 5 years ago. The average is one decrease per year. They have gone from .41 per quarter in 2008 to .20 per quarter, a 50% decrease in 5 years. Total Dividends paid by RSO since 2010 have been $3.80 so if you bought RSO on January 2, 2010 you would have paid 5.63 and collected $3.80 in dividends for a total return of $3.65 as of today's closing price, a 68% return for four years. If you had bought SFI (STAR) on January 2, 2010, you would have paid $3.39 per share. SFI has paid no dividends, so its total return with today's closing price being $14.48 would be $11.09, a 327% return. If you had bought NRF on Jan. 2, 2010 you would have paid $4.19 and would have received $2.37 in dividends for a total return at today's close, ($15.01) of $13.19, of 315%.
    My point was and still is that there are much better investment alternatives to RSO at the present time and that there will continue to be better alternatives, IMO, until RSO management demonstrates that they have turned the company around. The most recent announcements of loans made is reminiscent of last spring when management made a similar announcement. However, not much else happened the rest of the year. I hope that this year is different and I do wish you and other RSO investors the best.

  • Reply to

    Bottom

    by johnsonjoel1 Apr 11, 2014 9:28 AM
    lunco lunco Apr 16, 2014 12:02 PM Flag

    A Tale of Three Stocks:
    johnsonjoel1
    Once upon a time, (2009-10) there were three stocks of somewhat similar companies trading below $3.00 a share
    The first stock, SFI stopped paying dividends on their common stock and is currently selling over $14.00 per share.
    The second stock, NRF started to look for ways to increase shareholder value and to grow their dividends, and is currently selling close to $15.00 a share while paying $1.00 in dividends a year.
    The third stock, RSO, continued to make promises and continued to realize a steady decrease in "core" earnings followed by annual decreases in their dividends. It is currently selling for $5.50 a share.
    My question to you, which company would you sooner own?

  • Reply to

    NSAM--amended registration statement

    by dar200 Apr 14, 2014 5:09 PM
    lunco lunco Apr 15, 2014 4:03 PM Flag

    Dar...
    Having a memory is sometimes a challenge for some of us and so that is why I write things down.
    Thanks for researching and sharing the information
    Wishing you the best

  • Reply to

    Prospect upgraded to buy 12.00 target

    by get_this_money Apr 10, 2014 7:49 AM
    lunco lunco Apr 14, 2014 9:56 PM Flag

    general...
    I put pennyone... on ignore many months ago; you may want to consider doing the same. I found it a whole lot less aggravating to just ignore him/her rather than trying to explain to someone who doesn't want to understand. Just a suggestion
    Wishing you the best

  • lunco lunco Apr 14, 2014 12:48 PM Flag

    fooledbyrandomness4;
    I was always taught that Plagiarism is just like stealing. It would appear that your posts are nothing more that copying and pasting from a comment made to a SA article this morning. To share the information is appropriate, to post what another has written without giving them credit is not.
    The SA article is "Prospect Capital: A 12.30% Yield With 15% Upside Potential" by Albert Alfonso
    The article can be viewed at:
    http://seekingalpha.com/article/2139623-prospect-capital-a-12_30-percent-yield-with-15-percent-upside-potential?ifp=0
    The Comment being copied is by invest2befree

  • lunco lunco Apr 14, 2014 12:34 PM Flag

    fooled...
    Your annalysis looks a lot like the comment to this mornings SA article posted by invest2bfree
    http://seekingalpha.com/article/2139623-prospect-capital-a-12_30-percent-yield-with-15-percent-upside-potential?ifp=0
    "If you look at pure theoretical finance based valuation it should be at $17.07.
    Dividend Discount Model Valuation = $17.07 per share
    Assuming Growth of Dividend is Zero-
    DDM Valuation = Dividend / Required Rate Of Return
    Required Rate of Return = Rf+(Rm-Rf)B
    Rf= Risk Free Rate = 10 year yield = 2.64%
    Rm= Cost of Equity Capital = 8%
    B= Beta = PSEC beta= 0.95
    RRR= =2.64+(8-2.64)*0.95 = 7.732%
    DDM Value = (.11*12)/0.07732 = $17.07 per share
    For price of 10.82 all else remaining equal implies a beta of 1.75.
    So basically market is expecting psec to 75% more volatile than the market even though historically it is less volatile than the market."
    Quite a coincident wouldn't you say

  • Reply to

    Bottom

    by johnsonjoel1 Apr 11, 2014 9:28 AM
    lunco lunco Apr 11, 2014 11:07 PM Flag

    johnsonjoel1
    I fully agree with coochy.cooty, and have done so for years. There are few that have a more solid grasp of RSO and who have disciplined approach to investing and so I listen to what she has to say. I have no interest in purchasing RSO at any price above $5.00 until their core earnings improve. It really doesn't matter what their historical pps has been. What does matter is the amount of their dividend and, IMO, a dividend that is above "core" earnings is very suspect. With RSO I am at the point that I want to see results before I invest again.
    Wishing you the best

  • Reply to

    If anyone was watching CNBC earlier this morning

    by bobdbeck Apr 11, 2014 8:51 AM
    lunco lunco Apr 11, 2014 10:55 PM Flag

    bob...
    I find myself asking one primary question; is the US economy getting better or not. If it is, that companies that will benefit from a better economy are the companies I want to invest in. It is my belief that the US economy is continuing to improve, (although not as fast as I would like), and that BDCs in general and PSEC in particular will benefit from that improvement. I look at the current weakness in BDCs as temporary; caused by an external factor, ( the removal of BDCs from various indexes), and that the current "sell-off" in the market is also temporary because neither is being caused by fundamentals, IMO Dividend paying stocks such as BDCLs will, I believe, continue to pay healthy dividends and to me that matters far more than the pps.
    Wishing you the best

  • Reply to

    Bought 85k @ 10.84

    by fooledbyrandomness4 Apr 11, 2014 12:46 PM
    lunco lunco Apr 11, 2014 10:46 PM Flag

    nedelkay
    Many years ago in a finance class my professor taught me the difference between actual profits/losses and paper profits/losses. While I am sure you know what the difference is, I find that I benefit from being reminded from time to time that paper profits/losses only exist on paper. They are not real and it is a mistake to act as if they were real. For a profit or loss to become actual, a sale must occur, again something I'm sure you know. I would like to have PSEC move up in price, it makes me "feel" good. But if it does or if it doesn't, what really matters to me is the continued payment of the dividend. That is why I bought the stock and that is why I hold the stock. Even if the price should drop to zero but the dividend is maintained, I will be doing very well. Therefore, I would suggest that the question that matters is not what the stock's pps is day by day, but whether the dividend will be maintained. If the dividend is maintained, then the pps will take care of its self. If not, that is another story. As of now, there is nothing that I know of that would imply that the dividend is at risk in any degree. In fact, I would suggest just the opposite is happening.
    Wishing you the best

  • Reply to

    Ex Dividend Sell-off

    by lunco Apr 9, 2014 8:43 PM
    lunco lunco Apr 10, 2014 5:20 PM Flag

    Thanks Kel for the invitation. I just might take you up on it. I sold out of FSC some time ago, after a SPO, and sold my TICC last week. I am very long in PSEC and look to BDCL for additional exposure to BDCs.
    Wishing you the best.

  • Reply to

    Ex Dividend Sell-off...

    by lunco Apr 9, 2014 8:53 PM
    lunco lunco Apr 10, 2014 5:16 PM Flag

    ninja...
    where was it suggested that drop in price on the ex-Dividend dividend date had anything to do with short selling or short covering? Did I miss something?
    Thanks

  • Reply to

    Ex Dividend Sell-off...

    by lunco Apr 9, 2014 8:53 PM
    lunco lunco Apr 10, 2014 5:12 PM Flag

    ninja...
    What I was trying to point out is that although the price of the stock is adjusted after the market close to reflect the amount of dividend paid, it does not always open at the adjusted price as happened yesterday with CEFL. At no time during the day did the stock sell for the adjusted price but rather opened higher and remained higher which meant that a person who sold before Ex dividend hoping to buy back in at a price lower than the adjusted price on Ex dividend would not have been able to do so with CEFL yesterday.
    That being said, I agree that "dividend harvesting" is risky and for me not worth the risk.
    Wishing you the best.

  • Reply to

    Ex Dividend Sell-off

    by lunco Apr 9, 2014 8:43 PM
    lunco lunco Apr 10, 2014 11:37 AM Flag

    What a difference a day makes...
    Down $.40 this morning along with the general market but it will be back.

  • Reply to

    $20m new shares being issued

    by davejfrompa Apr 9, 2014 3:51 PM
    lunco lunco Apr 9, 2014 9:56 PM Flag

    More dilution? Probably not. Issuing stock is how a BDC grows and PSEC has demonstrated its ability to utilize funds raised to increase core earning by a greater amount than the issuance of stock costs them in additional dividends paid. In short, it is the issuance of new shares that enables management to make more money for ALL of us.

RSO
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