How can a company with rising revenues ( up 16% in 2013 ), rising net income (up 40 % in 2013 ) , $2.84 per share in cash, a $7.22 book value and 35% inside ownership be priced at $2.18 per share ? There is a rather small short position , so I doubt that this is a factor. Considering the cash position, it would seem that the co. would be attractive as a take-over candidate or to be taken private . What gives ?
As a Seadrill long, I'm dismayed by the downgrade. But let's remember -$20B backlog, " We will continue current dividend for next few years " (2/22/14), 96% floater coverage for 21014, 80% jack-up coverage, recent contracts signed ( W. Africa)at good day rates, highest EPS growth, dividend and ROE in peer group.
BDCs have been a good place to be in recent years , not withstanding that their exclusion from some indices recently have put downward pressure on stock prices . PSEC has been a very good income producer. I have just started to buy back into MCC. With an NAV = $12.86, an 11% dividend ( that I consider safe ) and recent analyst targets between $14.50 - $16.00, I believe this to be a good entry point.
A growing fleet means growing revenue. Growing demand for plane leasing. FLY has $10 cash/share. Sells well under book. 6.5 % dividend that seems secure. I've followed, and made money, on this co. for years, in recent years by buying shares when stock dips below $14.70 or so.
Unfortunately the recent positive earnings report had no positive effect on the share price. The only reason I continue to hold shares is that with such sizable ( 80% ) insider interest , I am hopeful that management will see fit to take the co. private. They show little interest in their shareholders and don't bother to respond to inquiries.
In the Feb. 25 earnings call, the co. stated that it will maintain the .20 /quarter dividend for 2014; and estimated an AFFO that will cover the dividend. So the 13% dividend implies a superb return, and the $5.56 book value should put a floor under the share price. Forget $9 ; I'd be happy with $7 by the end of this year.
AMEN ! As a shareholder , I have communicated with the co. and urged them to increase their share repurchase program or initiate a dividend since the positive earnings report has had no effect on the share price. I recall that a $2M repurchase program was announced almost a year ago, but I'm unaware that any shares have been bought back. This management has been uncommunicative when I've tried to contact them in the past., yet I'm hesitant to sell my shares at this undervalued price. With little if any regard for their shareholders, and considering the sizable insider ownership, taking the co, private would seem to be a no-brainer.
In recent years ,almost every time the FED Chief makes a pronouncement the stock market reacts negatively---fortunately usually on a short-term basis..
The last dividend announcement was made on 12/19/2013 ( payable 1/28/2014 to 12/31 shareholders). So we should hear something today or tomorrow. I feel quite certain that the dividend will again be .20 since this was "confirmed" at the earnings call on February 25th.
In the Feb.. 4th earnings call, the co, stated that there had been no loans made in the past six years that were on non-accrual. .03% of portfolio is on non-accrual . With all shares issued at over book value the past years 9 thus accretive ), and with ,26/ share in retained earnings, I have a high level of confidence in management.
Making the case for FSC -Dividend would appear to be secure for the balance of this year; selling significantly below NAV ; $100M buyback in place; no investments on non-accrual; average yield on debt investments = 10.9% ; originations outpaced exits 4:1 in q4, 2013.
Another earnings report, another recitation by management that they have " accomplished their goals " and positioned the company for future gains. Yet the bottom line is another adjusted net loss. This management knows how to do everything except show a profit. As a long-term, long suffering shareholder, and considering the hugh insider ownership of this stock, I believe that this company should be taken private.
to account for recent price action. It should be read by anyone currently owning or interested in PSEC ( or other BDCs ). Any dips encountered in the next few weeks may represent a buying opportunity.
While predictions are not guarantees , I think it's safe to say that EPS will show an increase each year from 2013 through 2015; that the dividend is safe and well covered; and that ESV compares well in most parameters with its peers ( see February presentation on co. website ). Conclusion- this stock is currently undervalued. I am long the stock.
I completely agree with your analysis . Despite being a disenchanted long, I am unwilling to sell shares of a stock that sells at the equivalent of its cash per share. This fact combined with improving revenues, improving margins and improving earnings would suggest that I should add to my position; but I am wary since we are dealing with a China based company.
While I do not own NRF common stock, the Preferred B shares continue to be a superior income vehicle. With regard to RSO, both the common and preferred shares are worthwhile income producers. In this era of low yielding money markets and bonds, I'm surprised that more investors don't turn to preferred shares.
Regarding HRZN -sells below NAV ($14.95), consistently earns 11 - 15% on loan investments, currently pays 9.7% dividend, had increased pipeline activity in 4th quarter and provides downside protection with a conservative loan to value ration.