The best is to pay dividend of recurring income, and not one time gains... Sure if their loans suddenly appreciated in value, yes it would have made GAAP income larger... But what you really want is dividend taken out of recurring income.
PSEC already at 20% discount to book... It's a screaming buy already now... As long as RSO book value keeps falling, well, price of stock will also be setting new lows... By this time next year, RSO book value will be down another 30 cents.
Looks like RSO is headed to also having 20% discount to book.. $4 coming...
Well, at least there the dividend is pretty much the same as GAAP income and book value has stabilized... Also PSEC has a bigger discount to book than RSO... For me was a no brainer to chance.
RSO is paying a dividend that is much larger than GAAP income. That is why book value is falling... I was very disappointed with the 7 cents GAAP income. So I sold RSO and bought PSEC.
Yes, this is to show how ridiculous it is that PSEC is trading 20% below NAV...
I have read the prospectus and it even mention as a possibility to completely end the agreement with the advisors... If I remember correctly with 60 days notice.
So the company is in good shape... Just need to adjust the management fees on the next contract signing with them... The fees shouldn't be growing out of control when earnings per share is falling... But I think management will negotiate better terms going forward... there is a lot of pressure for doing so.
Look at Annaly Capital Management (NLY) earnings report 2 days ago... They had GAAP net loss of $476.5 million, $0.52 loss per common share...
PSEC is doing ok when compered to others with same yield... it comes to the earnings numbers... Only problem is with the stock price.
RSO already been through dividend reductions because of falling CLO income, from now on its going up.If I were you I would sell all KCAP and buy RSO.
EROC is saying they plan to increase the distributions this year... According to the latest earnings release:
"The current low commodity price environment presents opportunities for Eagle Rock as we look to grow the Partnership. Our strong hedge portfolio, coupled with our ample liquidity and low leverage ratio, positions the Partnership in 2015 to make accretive acquisitions, reduce the overall production decline rate and grow distributable cash flow."
Which other upstream oil company is forecasting increased distributions this year?
I just bought a position on this company... I'm sure to make money on this.
Sentiment: Strong Buy