they're in the process of transforming into purely an industrial REIT. so they've been actively selling their office real estate. as a result, they're currently in a transformative stage instead of a growth stage. as noted in their press release: Acquired $203.6 million of industrial assets. Sold $185.1 million of office and retail assets.
not only will they be building nuclear reactors, they will also be housing alien made spacecraft, and the remains of the dead aliens from the roswell crash from 1947
snuau comments were good, but i disagree with the "relatively low risk," comment. the problem so-called "smart money" has with BDCs is that you really have no knowledge of the finances of underlying companies the BDCs are lending to. One thing you do know is regular banks won't lend to the companies the BDCs are lending to. so by nature, BDCs are lending to companies at higher risk of default. NMFC has been very stable, though they stumbled last quarter and their NAV took a hit. this might mean the price right now is elevated because of the pending ex-date, and it might start trading at a sustained lower price range after the ex-date due to the lower NAV.
the other thing about BDCs is that you simply dont get much capital appreciation (it's all being paid out in the dividend), and you're at a much higher risk of a sell off in a down market compared to a large cap stock. it's critical that you keep BDCs as a small % of your portfolio, and be very picky which BDC you buy. NMFC has had a good history, but personally i'd wait until it dropped to roughly NAV before buying.
KKR has made a nice steady bullish move since mid december. it's a screaming buy in 2015 because it was undervalued in a near fully valued broader market in 2014. it's price action is clearly positive right now. i think we're in good shape for 2015.
predicting oil prices is like playing darts blindfolded while drunk in the dark. no one has a good record in predicting oil.,,, but everyone has an opinion.
that makes absolutely no sense. it takes about 10 days for a drop/rise in oil contracts to be reflected in the price at the pump.
i would take the comment "comfortable given our seniority in their capital structure," as a reassuring comment. it means they get their money back if things go #$%$ up.
new dividend yields 10% at current price ($7.25ish). the new dividend is thoroughly covered. one would think that would put a floor in above $7 when all the sellers have flushed out.
"really needs to close above 124." --utter nonsense. CELG was in the $80s in september. what on earth do you want?? straight to $1000 by 2016??
yep. but the reason i think it's the driving force behind today's sell off is because it has a lot of chatter on twitter. hey, let it go down. i'm a long term holder... i'll gladly take another position if it ever hits $110 again.
the best idea is to keep away from anything with "fifth street" in the name. after 3 years i've learned my lesson.
rising NAV, special dividend, what's not to like? they also have a huge amount of undistributed income (despite the 90% payout requirement). that amount is only announced once annually... and i don't see it in the press release. perhaps they'll mention it on the cc.
dgaines80... management says they covered their dividend for the fiscal year, but that's because their 3rd quarter NII was 42 cents, but they waived intensive fees (to their credit) that quarter, otherwise they wouldn't have covered the dividend that quarter. meanwhile, the other 3 quarters of 2014 they failed to cover the dividend. they were paying out 34 cents per share, while earning 31 cents per share.
the general issue i would have with SCM is that they are small (32 portfolio companies), they're young, and they're not covering their dividend on anything resembling a regular basis. having said that, it is cheap... selling well below NAV.
calm down. it's all noise. up and down in the short term, nothing but up in the long term. CELG was $90 in sept and $70 last april. what does that tell you? it's earning $1 per share in 2014 and projected to earn $12 per share in 2020. the more it sells off, the better the opportunity to make more money in the long run.