I bought about three months ago for about $14.60. I got one divy, then sold a couple of days ago at $15.13 for a 3/4 divy cap gain [sold 10,000 of 11,000 shares]. Bought back 500 shares today at $14.82 and now have 1,500 shares .... just not sure where this is headed, but I hope Jack is right.
If it's a train wreck then maybe you should be buying. Of course, management might have taken a stupid pill after a decade of brilliant performance, so you could be right.
All good points, plus insider buying in August. These guys didn't suddenly take a stupid pill ... they'll be fine and so will we.
The biggest reason that they didn't cover was the large amount of early payoffs they received. Their loan originations were actually negative for the year when payoffs are deducted. Low rates cause people to want to refinance, so it's probably good if rates go up a little.
What is your point? What I wrote is true especially for hybrid MREIT's which is my preference. Last chance to actually make a point.
If you duck the question again, I'll just assume that you're lonely and need a pen pal ... at that point, I will disengage.
If a mortgage that was sold to an MREIT in an MBS bundle goes bad, who bears the risk of loss [disregard the gov't guarantee]?
It would be easier if you'd just describe the process briefly so we can all understand. Not sure why we are discussing this here unless you think RSO is an MREIT.
Well, Junior, I haven't had a mortgage for 10 years. What do you think MREIT's buy [invest in]? What do you think Freddie and Fannie guarantee? Is MBS the answer? And what is that?
I think $0.20 for this quarter and next is highly likely since they reaffirmed that guidance in the last ER. So, the question is, will they be in good enough position by 2015 to continue the $0.20 after that? I believe they have a good shot at it based on the funds available for investment. If they can, we'll see the PPS back into the $6's.
I think the whisper number is another $0.67, but I agree with you that an increase is possible. I'm going with $0.75, but I must admit that these guys tend to pay out everything they can.
I agree with you. You probably know more about PSEC than those two-bit analysts. I could use about $0.30 - $0.35 to turn my PSEC green, and I also see $12.00.
I don't get it. If that's what you think, then why are you here, and why don't you leave. Your opinions are yours to have, but there is a disconnect between your opinions and your actions. Why bother with us hopeless souls? Why try to straighten out our useless lives? I can't believe you started a thread just to tell us how worthless we are.
MREIT's buy mortgages. In essence this means they are lending to the people who took out the mortgages. You see that, right? Yet, they don't know any of these people. Are you educated now?
"and here come the thumbs down from the losers......"
Minor typo, should be: "and here come the thumbs down to the loser......" Slick, your advice means nothing when it comes to people's dislike of you. If you don't care that people find you distasteful, don't complain about it.
You can invest that way if you wish, but PSEC hasn't had another bad loan for years, and with the economy improving, it is even less likely that they will have another anytime soon.
Funny that people are so worried about 70% leverage for a BDC loaning to businesses they review carefully, but no so much when a MREIT levers up 700%+ loaning to people of unknown ability to repay.
PSEC wrote off a loan of $44M completely with $35M of that write-down coming in the quarter being reported. That amount was worth about $0.11 per share of both NII and NAV. In short, without that write-down, they would have had close to a $0.36 NII instead of $0.25, and the $0.33 divy would have been well covered with NAV remaining flat. That was a one-time event which won't affect future quarters since it is now 100% written down. It is also covered by undistributed earnings, and won't reduce current quarter's divies..
PSEC is working on reducing their cost of funds, and, if they succeed, they might actually increase their divy ... not reduce it. They may not have announced the next divies 'cause it's a new year, and they may increase a little to ... say ... $0.36 a quarter.