Maybe dividend won't drop. Odds are they might. If dividends aren't going to drop then the stock should be surging higher. Sometime the market knows more than we do. Sometimes not. But, most of the time things are rarely black and white. You have to understand that and not preach with such certainty. You should really get a different hobby.
MCC had nii of .28 this quarter with none of their non accruals contributing. What if they cut the dividend to .25. Now that's a yield of 16.78% and they are paying out less than 90% of NII. Doesn't seem like such a risky stock anymore now does it. I bet the price goes up and the yield returns to the 12% area for a stock value of 8.25 in time while you collect dividends.
Pac, gee thanks. I would have never have grasped nor understood the concept. Revolutionary to say the least. And to do it daily like you advocate. Man I could have retired at 28 instead of 41. I'm going to change my whole approach and maybe some day I'll go back to work at Costco or someplace because they probably won't give me a brokerage registration.
Ok, first don't go flipping back and forth between MCC, PNNT and PSEC. Second, right after you stop the hyper trading ask yourself why you bought the stocks to begin with. If it was to flip and profit well that's not a long term workable strategy. Stop and think about it, there are guys who know what they are doing making a lot of money legitimately and their records show they can not consistently beat the S&P 500 index.
So be a flipper or a flipper follower at your own peril.
Now, if you bought these stocks for income you are still receiving income. You haven't lost any money if you haven't sold them. If you sell them the income stops and you will have lost money. Unless the economy is going into a depression or all the CEOs are Bernie Maddof clones, relax. Collect your dividends. Expect a dividend reduction from PNNT of .22 or less sometime this year. Still a 17% dividend on today's prices and the stock probably rises with a cut and will rise over time. MCC probably a cut coming as well but not as large. Believe it or not PSEC may be able to hold it steady for the year and a year from now things may not look so bad. Yields in excess of 20% are rarely sustainable, but project a bit of a cut and a bit of a stock recovery and all of a sudden the yield looks sustainable. Continue to invest at these levels and over time your income will rise as will your portfolio value. I retired at 41 and have been following this plan for the last 20 years. People like Pac want to get rich like people want to lose weight. They want it to happen overnight ...so it neither ever happen. GLTA!
Pac, what firm do you work for? Is it a reputable firm with deep pockets and a compliance dept? I am now 61 and been retired for 20 years. When I worked I was the president of a securities brokerage firm. In all honesty if you would have worked for me I would have had to ask you to leave for the safety of our clients. It really would be better for everyone and in the end yourself if you would quit posting and just go away. Share your genius with your dog or someone who is unable to open a brokerage account.
The preferreds are down 13.5% today. I sold my position last month at 23. A year ago they were at 26.50. The only reason for such downward action is fear of the unknown. A scam, fraud, a belief that management will try to screw the shareholders. I can not believe this price action is based on fact is rather completely fear based of the unknown. These are hard assets. They have valuations. The price action of both the common and preferred the past several days is difficult to comprehend. GLTA. I am still holding the common and having less to lose every hour of every day. Don't have the guts to even jump into the preferred.,
Pac, your entire line of reasoning has been to invest 100% in one stock and then move it to another. Then you claim to make an oversight error and claim no harm no foul. What you do is in the end day treading guess work and while it may work for a while my guess is that it won't be long and you will go away without realizing why you failed. You have to get some perspective. You are not nearly as good as you think you are and some desperate people hope you are. But, good luck to you. I would just like to ask, why do you feel compelled to post so much and try to get others to follow your insane ideas. If you tell me its to help others I would suggest you save the energy, put it into churning your portfolio even more and take the "guaranteed" extra profits and donate them to a deserving charity.
Another example of immaturity, arrogance and really a fundamental lack of investment knowledge. Sell everything, now buy this, I was wrong go back and buy this one instead. And yet there are lemmings that seem to follow this moron. One day his portfolio will be worthless but it "won't be his fault". Wake up, this guy has been posting for about a year now and his stocks have gone down like yours. Only problem is he is all the eggs in one basket kind of guy. Young, dumb and a fool! The comic value was kind of fun in the past but now some people are listening to him and they are going to get hurt in the end.
pac you have always been full of BS. You are an egotistical insecure poster that up until now didn't domuch more than provide humor but you are venturing into dangerous territory now. Do everyone a favor and #$%$.
The price has reached that "it is so cheap there must be something we don't know" price. If so the 6 analysts that follow it don't know either. This stock was about 40.00 a year ago. Back out NRE and this kind of downside still makes no sense. So, does someone know something we don't know?
With the amount of common dividend paid and available for reduction I guess I perceive the preferred to be less risky than the market. Seems like an opportunity to me but when things look too good to be true they are usually too good to be true. Unless they aren't.
Dar, do you think the drastic decline in regard to both the perferred and the common is simply because management is perceived as greedy pirates? I agree that this may be the case in regard to management but can not envision the preferreds not continuing to perform so from an income standpoint it is difficult to find better opportunities. Assuming they continue to pay!
Generally I agree but 10 months ago this preferred was $26.67. Make me wonder a lot and worry a little. Anyone have a credible explanation for such a drastic decline?
I think you are too pessimistic. The nii with fee waiver and other income etc minus the .05 from energy takes the dividend down to .90 with a more optimistic perspective. With a .90 div and an NAVof 7.50. ( energy is worth more than 0) the stock pps should be able to get back above 7 when sentiment turns.
OK, so management is over paid and the investment community hate them. But this discount just doesn't make sense to me. The preferreds are yielding over 11% and to me seem secure and sustainable. What am I missing?