Well, they have provided guidance at .20 for 2014. They also said (again) that the dividend will be covered by the 3rd or 4th quarter. I have been negative on this stock and it seems opinions have hit rock bottom. I am taking a chance with a few thousand shares that this time it will actually be true. If the dividend begins to be covered you could see a yield of 11% or so which would be a 7.25 stock price. Then it time to see if the dividend can grow which would happen at the very earliest towards the end of 2015. If RSO is for real then there is solid total return with this stock for the next 3 years. If not well you know what will happen. GLTA!
Well, maybe you guessed . I bought back in to RSO. Nothing huge, 3000 shares. I reread their latest CC transcript and cohen seemed to be making a logical forecast rather than a hopeful promise. I may very well be wrong but I am now thinking that there will not be a dividend cut. Once coverage is established I don't believe the yield will be 13% any longer. I sold some foreign option income CEFs and used the proceeds for RSO; PSEC; TICC; KCAP; NRZ; WMC(small position) and SDRL. I believe all can maintain their dividends except for WMC where I believe there will be a .60 reduction through the course of next year which still provides a 15%+ yield. Hoping for dividend growth from NRZ; TICC and PSEC and in a couple years some dividend growth and price appreciation from SDRL.
Going forward I am considering adding some Helios high yield and asset back cefs. Provides a 9.25% yield and this may get better as soon as the taper continues and the market smells a little tightening. Intend to DCA into the high yield over the next 2 years.
Any ideas for income with the slight potential of appreciation would be appreciated. GLTA!
You are so right about RSO and Mr Cohen. He is an incompetent. He promised to cover the dividend starting in the 3rd qtr. Well he did in the 3rd qtr and then didn't in the 4th qtr. I do not believe he is truthful and I do not understand why people believe theis is a "steady stable dividend". It has been reduced from 1.65 to 1.00 to.80 and will be reduced again at the end of this year with the following announcement" with the resetting of the dividend RSO now has suffieient cash flow and earnings to significantly enhance shareholder value. Going forward we plan to grow both the PPS and dividend." This will be BS in the purest form. Get out and buy PSEC, TICC, OCLC, NYMT, KCAP or SDRL. RSO is a loser play. How much proof does a reasonable person require?
No Ray, I am not shorting. I hold on to the stock to remind me not to put too much trust in what is said in conference calls. I believe the rose colored glasses world that Cohen has been pushing borders on a breach of his fiduciary duty to the stockholders. He promises and promises, never delivers but then promises more. The guy should sell time share or work in a circus. He is a clown. Moreover, he should be taken to task by the regulators and no longer be able tp push this hash. I think the entire family is missing a gene. Good luck to you.
Remember when the CEO promised the dividend would be covered in the 3rd and 4th quartet? Right. Oh those nasty loan pay downs reduced our income but not to worry we have originated many new loans and the future is bright.....blah ,blah, blah. It never stops and while the markets go up this dog sits still. I can not believe I once liked this stock.( silly me, I listened to the CEO and believed him) I am down from 10,000 shared to 600 and glad I woke up and smelled the coffee in the high sixes. Cohen has no shame. He sings the same song every quarter and seemingly some still like the music. Look at SDRL, NRZ, PSEC, OXLC,KCAP or TICC as a viable alternative and let this dog go.
The pipeline is always "robust". They always "would have made more" if all the funds were invested. This stock continues to bust out "almost". I am down from 10,000 shares to 600 shares. Maybe someday the stars will line up for RSO but in the meantime OXLC and PSEC pay about the same dividend and don not continually disappoint. Godd luck to all the believers.
Dni made a huge error by issuing new shares when it was selling at a discount. They compounded the error by offering the shares at an additional discount. New shares should be issued when a premium can be achieved and be accretive not dilutive. The new shares were issued in an up market without any great buying opportunities. If you believe management is still sitting on cash trying to time the market and buy good companies at cheaper prices then the prudent thing to do would have been to purchase their own discounted shares in the open market with leverage not raise capital at a discount. I am getting out of dni. Management is in it for themselves and not the shareholder. Add to that the fact that performance has been sub par and it makes sense to pursue better opportunities.
Well the end of the year has now passed and I think it is fairly obvious that the rights offering was nothing more than management increasing assets to generate more fees for themselves. As the market went up through year end both the NAV and market price of XDNIX and DNI are down significantly with the decline immediately following the rights offering. We have a market price of 14.95 as opposed to a high of 16.88 in August. And for those who say the NAv is what is important, I agree and the NAV is now 17.05 down from 18.38 before the RO. So whay did we have the RO? To benefit shareholders? While that is what management tells us it is obviously a bunch of ¡+-¡! It should be illegal to have a RO when the market price is at a discount to NAV to the extent DNI was at the time. And then to offer new shares at a discount to the already discounted market price compounds the wrondoing. I believe management breached their fiduciary duty to sharholders for their own benefit with the ill conceived RO.These guys should be ashamed of what they did. And yet we still have cheerleaders on the board trying to placate shareholders. Makes me wonder if they work for management.