A change in sentiment and it's over 8 in 3 days. It just went X so add .30 to the pps for the next 3 weeks when evaluating performance.
I own MCC, PNNT, NRZand NEWT. I can't understand the market pricing on any of them. Dividends are covered with PNNT and MCC. Book value and dividends are increasing with NEWT and NRZ but all continue to decline. I believe these are opportunities particularly in NEWT and NRZ as I expect dividend increases and NAV increases from both. I see no need for dividend reductions with PNNT or MCC (although waiting for MCC earnings). Were reductions to occur the new yield would still be better than most other alternatives. I guess when nobody loves you, nobody loves you.
Sentiment: Strong Buy
This stock is thinly traded and shows a history of a run up and slide back every quarter. It is trading above its NAV and has its fundamentals going in the right direction. Be patient. This is an operating company that is growing its business. Look 2 years down the line. GLTA
So does anyone have any clear rationale for what is going on? This company did great for a long time and now it just keeps dropping. I can't believe things are that bad particularly with the disclosures needing to take place for spins etc.
I don't really trust the management at ticc. also they are 33% clo the more the cash flow and accounting for CLOs is discussed the less I trust it is actual earnings and more like cash flow that will be taken off the other end at some point.
I am a little confused with all the blame for non performance being blamed on management fees. Didn't management charge a fee when the stock price was 13.00? I think the reasons for so many BDCs performing poorly are multiple. Blaming management fees is too simplistic. I really can't find income alternatives that come close to the Mcc, Pnnt, Kcap, ticc, opportunities. Now Kcap has low fees and Mcc has high fees. They are both down and personally I think Mcc is a better bet than Kcap. GLTA
No problem. I think the situation her calls for patience and some trust in Art Penn. He is definitely mindful of the unbroken dividend record. They do have undistributed NII and can carry the dividend for quite a while. I think Penn was acknowledging the need to work out of the non accruals and book positive new business. If they can do that over the course of a year the dividend might hold or even increase. If the non accruals get worse or become greater losses than anticipated we will see a cut. In any event neither will happen quickly. Should have a better feeling 9 to 12 months from now. GLTA
I listened to the conf call in full and came away with the following feeling. Art Penn was supportive in regard to having .53 in undistributed NII but would not commit to holding the dividend level where it is. IMHO the dividend is not going to be cut immediately but unless things improve markedly it will be cut some a couple of quarters down the line. 6 months from now I believe we will be receiving a .90 to 1.00 annual dividend. this is a 13.75 % yield on today's price. Not wonderful but with an eventual recovery to NAV in the long term it still makes sense to me as an income investor when considering the alternatives.
Seeds, I will never buy this stock again as long as a Cohen is in control or even working as a janitor.
He has mislead for years. Not a single promise has come true. Now when asked about the dividend did he have the guts to say" it's obvious we have to cut the dividend and probably to the .40 per quarter level"? No, he hedged and acted as though the shareholders had 2 wonderful options to consider. He is a loser and so was I for listening and believing. Never again.
This company continues to perform and the recent offering resulted in a 16.50 price. I think that with results that will be positive the PPS will increase from here. These guys seem to be innovative and are approaching some economies of scale. I try to picture where this stock can be in 5 -7 years. I see no reason it can't be in the mid 20s and paying a 10% dividend.
I expect the earnings will have very little of a surprise in them. Penn has telegraphed as clear as legally possible that they are confident in their portfolio and that a dividend cut is not in the cards. I expect .27 or .28 which means they are not reliant on undistributed income. They dividend isn't going to grow in the foreseeable future but I don't think it will be cut either. Find out more soon.
I'm going to take your advice. This company and Cohen have not delivered on a single promise. Now we have a series of "one time events". This company is #$%$. Look 5 years into the future and it is still #$%$. I got addicted to the extremely high dividend. I would have been better off putting the money in a tin can and reinvesting the 0 return. By the time the attorneys get done with Cohen he might experience a one time event and RSO will get a new CEO.
Seeds, I am sorry I jumped back in. RSo continues to disappoint and Cohen continues to change his story. The dividend is not in question, it will definitely be cut! Cohen said so in so many words. In the past he was always defending the dividend now the Board is considering it in light of would it be better to "return money to the shareholders via a stock buy back". What a load of #$%$. I am going to take my lumps and exit this piece of #$%$. I no longer trust Cohen and I believe he is over his head. There is absolutely nothing to be positive about regarding RSO. There are 2 questions: how much will they cut the dividend to achieve a 40 million stock buy back and how far will the PPS fall when they do? My guess is the dividend goes to 1.80 and the stock falls to 9.00. I'm outa here!
Everyone is worried about PNNT even though Art Penn comes as close as he can to telling everyone to chill out. They have never cut their dividend even during the crash. In fact they increased the dividend from .24 to .25 in Dec of 09 and increased it again in March of 10 to .26 again in March of 11 to .27 and again to .28 in Dec of 11.
For those who say the dividend cant be sustained at a 16% level get some perspective. If the stock price approaches NAV the dividend yield drops to about 11%. Also keep in mind this stock sold for 1.21 to 1.69 from November of 08 to March of 09. That was a yield of 79%. Yes 79%.
This is a solid company and would be amazed if after a record like they have they would now find it necessary to cut the dividend. I have 7,500 shares and just don't have the guts to buy more right now. Wish I would have bought $50,000 worth in 2008 at 1.21. That would have been 41,000 shares and I would be collecting an annual dividend of $46,000. Well that was a would a should a could a time and I didn't. We are in another would a could a should a time right now. I did buy some yesterday and might again next week even though I am over weighted. But as they say no guts no glory. They also say pigs get slaughtered so what's a guy to do?