The shares are previously un-issued shares - so it is increasing the number of outstanding shares - but the shares go through your broker, and into your account. The brokers set the timing and pricing of the drip, and different brokers do it differently. The brokers make money on the drip as well. Check with your broker to find out how they do it.
Don't worry about press releases. PSEC doesn't announce most deals. I think they announce deals that are of special interest to the financial world either by size, or type of financing or industry. Run-of-the-mill deals don't rate their own press.
I don't drip 'cause I try to buy additional shares in stocks that are down. Recently that has been PSEC, and I bought more, but it might be something else. Also, you are more likely to get a big dip or even correction in the summer so saving up to buy then has some merit.
Welcome back ... I know the feeling. I flew 250 missions over Laos and Viet Nam when i was younger. The only difference was that I knew I had a target painted on me, and you hoped you didn't. Kinda scary, huh.
I would look into the specifics of any CEF. For example, PHK often trades at 40% - 50% above NAV. This makes them very susceptible to big drops. Not all CEF's are the same so do a little DD other than this board.
You're beginning to sound like a short. The Dow is down 160 points today, and you can't figure out why PSEC is down $0.07. If you are long, listen to Carl.
Dar has put a lot of time and effort into understanding this deal, and communicating it to others. You want him - or others - to spend more time informing you because you post two words. And we don't even know if you own anything. Dar is right: earn some respect by doing a little research and posting a cogent idea or two .... maybe you'll be able to join the conversation.
I should've done that too. Shoulda, woulda, coulda. Then I over-slept this morning - I live on the West Coast - and missed the low lows, but I pulled the trigger on another 10,000 shares at $9.71. Not too bad, and this stock is looking strong.
WS has proven to be stupid time and time again. If they weren't, investing would be a lot harder. One thing is certain, though, they aren't stupid enough to listen to you.
I still think that $0.27 was a typo by Seeking Alpha or whoever did the transcript. I thought he said on the CC that $0.20 would be paid through the remainder of this year with the FFO trending higher than $0.20 by the end of the year.
" ... impact on the NAV of NCT's bankruptcy is largely unknown right now"
Well, one thing that is known is that the max exposure is $44 million ... mice nuts to PSEC.
The only means to add to tax payments collected through other means like withholding is the estimated tax form. Frankly, that's pretty easy.
It doesn't matter that you didn't send in the first two quarters of estimated payments. Send them in when you know about it. The IRS will figure out whether you owe interest or penalties, but you have to send it in quarterly when you realize that you will owe it at the end of the year. It is better to send it in with the 4th payment than not at all. And, you're supposed to add interest and penalties if they will be required.
If the IRS adds interest and penalties, but you didn't actually earn the income until later in the year, you can make that argument on a form [I can't remember the number], and the IRS may reduce or eliminate the interest. The important thing is to get the tax paid. I will probably due this myself this year.
PSEC's assets do use variable rates. HOWEVER, the rate is based on the short-term LIBOR rate, not the U.S. Treasury rate, and the rates have to go up quite a bit for there to be an adjustment. On the other hand, the rates also have a floor, and they're at the floor right now. So, don't count on the rates adding to revenues anytime soon, but it is comforting to know that there is protection to a spike in rates like we got last year.
Having said that, PSEC is affected by U.S. interest rates because most people simply don't know what they're buying when they invest in PSEC.