However, with its new monthly dividend of 0.13234 at its current price of 10.20, its yield is about 15.57%
I started a very small position on it at 10.19 today and may buy more depends on how I feel about it..........I previously sold it at 11.74 on 7/11/14.
However, ROYT " announced today a cash distribution to the holders of its units of beneficial interest of $0.13234 per unit, payable on August 14, 2014, to unitholders of record on August 6, 2014. The Trust's distribution relates to net profits and overriding royalties generated during June 2014 as provided in the conveyance of net profits and overriding royalty interest."
It has been dropping fast lately due to the vote in Santa Barbara, California to block fracking and its share price reached its 12-mo low of 9.61 yesterday and currently traded at around 10.20.
Just an observation:
Right now for PSEC:
Bid 10.99 x30,700 Ask 11.00 x228,500 (Sell orders is 7.44x of buy orders)
Daily volume so far: 2,969,930
Average (last ten days): 2,990,794
Now it would be interested if it drops on next Monday, a day before its ex-div date. It happened on April and June.
to myself. Just found out those TWM I bought at 45.11 on 7/22 was sold today at 46.30 (although my limited price was set at 46.11). Did J1 sell his TZA too? How about Kel?
Good timing, Kel. Now I made enough money to have a steak dinner tonight but my daughter and her family already plan on taking us out for Japanese. Sake, any one?
That means I would be rich tomorrow because when Kel bought short ETFs, the DOW will drop 100 points or more. You may want to take a look at TWM, it kept on rising lately. Could not even add more cheap.
It dropped 2.8% today because:
11:29 AM ET QR ENERGY SHAREHOLDER ALERT: Former SEC Attorney Willie Briscoe And Powers Taylor LLP Believe The Acquisition Of QR Energy By Breitburn May Be Unfair To Shareholders QRE
QRE went up 8.8% today. Darn I almost bought some QREd the other day. Well.
My advice is to have a balanced portfolio with both good REITs (CYS, PMT, TWO, NRF...) and good BDCs (FSC, PSEC, GAIN, AINV, ARCC, GARS, MRCC, FSFR, ASCF...). Of course buying them at the right prices will be critical.
Usually, low interest rate are good for most REITs and bad for most BDCs. When rate starts rising, it would be bad for most REITs and good for most BDCs especially those that have a lot of floating rate loans, such as PSEC and FSC. Also, most REITs use a lot of leverage while BDCs are only allowed a 1:1 debt equity ratio (their SBA loan amounts can be exempt from the calculation of this ratio). In that regard, while GARS (a small BDC with a market cap of 241.7M) currently only has a 9.75% yield but its NAV has been steadily increased and would reach 15.61 or higher when they announce their next earnings on Aug. 6. It will be able to obtain a 10 year low fixed rate loan of 150M from its first SBIC license soon and another 75M from its second license. In short, it would almost double its current market cap of 241.7M. It is almost impossible for them not to increase their future earnings. Its price currently dropped to 14.42 only because they had issued 2M new shares on 7/17/14 at 14.50. At its current price, at about 0.93 of its recent NAV, IMHO, is extremely undervalued and any wise investors should start a half position at around 14.40 and buy the other half after it announces its next earnings on 8/6/14. Its 12-mo target value, IMHO, is at least $15.
That is a great suggestion, in the above example with PSEC, one could set the stop price at $10 and the limit price at lower (like 9.70), then as soon as PSEC dropped to $10 on 5/13/14, it would try to sell the PSEC shares at a price of not lower than 9.70, but if its price fell too fast (it did drop to 9.17), then this sell order would not be filled. But when it rose back to 9.70 again, it would be sold. Therefore still need to be closely watched because one surely did not want one's shares to be sold when price starts rising. Thanks for the great suggestion.
SMALL some time is good. If our SBA (Small Business Admin) decided to loan you 225M dollars and allow you to lock in fixed interest rate at round 3.5% for ten years, can you not make any money?
You can read my comments on it on the FSC board. GLTA J
I actually received my 0.1487 dividend from it on 7/15, sold it at 12.49 on 7/17, saw it dropped and bought it back at 11.92 on the same day. Studied more on it and decided to dump all of it at a loss at 11.74, right away. Shame on me but now I am glad. Taught me a lesson in not to buy and hold anything I do not understand.