The Taubes had a couple of large (25,000 share) indirect purchases in May. Does anyone know what the Tuabes paid for the shares. Since they were indirect could it have been stock options they paid much less for or did they actually purchase the 25,000 shares at $9.41 per share? TIA.
That may be but if what is being called income is really a return of capital then at some point the will be nothing left. I think that issue and the fact that management will not clarify is why the stock has tanked more than the market.
Cornerstone funds are not investments. They simply give you back your own capital and call it a dividend. If you are comparing OXLC to these funds you have done OXLC a huge disservice.
They are not covering the dividend with GAAP but are with taxable income. The confusion/issue is what they are including in taxable income. The speculation that within the complexities of CLO accounting ROC may be treated as taxable income in some instances and what has been considered a dividend paid by income is really ROC. The thing that turned me against the stock is that a few simple comments by management would clarify the issues. Arrogant bunch of people.
Yes, it was one of mine too and I'm really only interested in income but I no longer trust the income stream. I decided to take smaller positions in a number of other good yielding stocks.(ARI, FSFR and TPVG) Unfortunately they don't pay as much as OXLC has in the past but over all may be better than holding a lot of OXLC going forward. GL.
I have owned OXLC for 2 and 1/2 years. I got out of 75% of it today with a small gain if you add back dividends. I took the bath because management could have and should have offered some explanation. I was in PSEC and got out of 100% of that company because of it's attitude toward it's shareholders. I will continue to monitor OXLC and if some recovery occurs I will sell the remaining 25% of my position. When times get tough, and they are getting that way in China and soon will be here, I want to be able to trust management. GLTA
Except for a bright spot during the meltdown RSO has been a continual disappointment. I want to think he can do it and jump back in but I am very hesitant. Just don't know.
Unless things go absolutely to hell in a hand basket in China and with oil I agree, .25 by year end. The increases are going to be aller and slower than anticipated. Might even see smaller than quarter point increments.
Your post is a bit self centered, it's not polite to gloat and no one likes a art #$%$. But you did nail it and I would have never thought it could go this low. There is obviously no love nor trust for this company. The question I have now is if the company is as good of a solid income play as it appears to be or is it a permanent dog? What is your hale opinion? TIA.
I started to follow Ffc years ago. At the time the dividend yield was about 7.5% and the 10 year treasury just under 5%. So why is it that now the 10 year is less than 2.5% and Ffc yields over 8%? The fed 5 year forecast has the 10 year going up to about 4.5 in 5 years. With this in mind closed end preferred funds may just perform at or near their yield. I like Ffc but not at the small discount to NAV. Hpi is at about a 10% discount and has performed well. In a market like this it's difficult to be totally committed to anything.
I'll have to check the energy exposure of PNNT. I think it's around 8%. I went back and listened to their last CC. Art Penn seemed convincing. Baird put a buy rating on them in Feb. and Jefferies just did the same with MCC. If these 2 get back to NAV there is a 33% upside with a current 14%plus yield. RSO has a deeper discount, higher yield and no energy exposure that I am aware of. The issue with RSO is it is not earning it's dividend with recurring affo. It is moving in the right direction but needs time to grow ordinations and portfolio to creat more spread income. Hopefully there are still enough rabbits in the hat to buy them the time they need. Worse case now is a .48 to .52 div next year with a 4.80 NAV. At these prices a .52 dividend would be a 15% yield and a discount to book of 25-28%. The stock is too cheap. GLTA.
Bonzo, I had too much, couldn't see the bottom and feared the fall in RSO was company specific. However I think the bottom is close and after the last couple days seeing how BDCs were treated I don't think it's company specific to RSO. The market is rich but with RSO at a 31% discount to NAV and PNNT and MCC at 25% discounts to NAV the comparative values are unprecedented. I plan to take a position in RSO about a third the size of what I had previously. I plan to add to PNNT, MCC and TICC if the CC goes as I anticipate.
this is rediculous. Reits and BDCs were down big today. Rates have actually gone down the past few days. Also, the slipped up and let it's multi year forecast on rates, growth and inflation out of the bag and it looks very tame to me. All of this is overdone. I believe RSO reported income from interest rate spread on their portfolio of .09 last quarter. The spread is growing. With a 31.5% discount to book, the guidance to maintain a .17 dividend thru 2015, increasing NII and aggressive origanations volume and a significant amount of non recurring income available going forward it has gotten too cheap and is a buy. I suspect a rebound on Monday across the board but think RSO will be weak the next couple of days until the CC.
This is long, round about way of saying I plan to jump back in next week.
I did avoid several thousand dollars of the carnage so hoping the redo turns out better. GLTA.
So rates might go up. NRZ would benefit from rising rates but since it's a reit it goes down. Now it's easier to understand why BDCs are getting clobbered. The market is reacting without thinking. This is a golden opportunity for income investors. We actually get a conference call on many high income reits and BDCs ina few days. Is 2 years many will look back and say woulda shoulda coulda.
We are going to get an earnings release and CC in a few days. Based on the tone of the call it may turn out to be an excellent to acquire a quality income stock on the cheap.
If you listen to the last CC and generally believe it which I did then the recent market action is totally irrational. I have plenty but would think this is a great opportunity.
I do believe it is a value here. If you go back and read the last CC Art Penn gave a pretty good summary of what PNNT does and what you can expect. They are approaching 52 week lows but I think the earnings release in a couple of weeks will send the stock back up somewhat. BDCs are really out of favor. A couple of years form now we may all shake our heads and wonder why we didn't buy more at these prices.
You are correct. There is nothing wrong with the company. However, I did sell my entire position earlier this week and took a loss. I had more than 15,000 shares. The reason I sold is that I came to believe RSO was not the high yield opportunity I thought it was. The recurring business NII/affo is about half of reported affo. This company could pay a 10% dividend on NAV and probably sustain it. It might even make the current plan work which is to generate affo with non recurring events while they grow the portfolio enough to generate recurring NII. I hope they can do it. They might. But I just decided there were other, safer less frustrating ways to generate recurring sustainable income. GLTA.