Phil, a lot of companies with huge loans did a lot of PIK loans during the 2008 - 2011 Great Recession. These were companies that had been paying back their loans & meeting their obligations & because of hard times they resorted to PIK loans. PIK loans always seemed to be very predatory to me. So anytime I see a PIK clause or loan I back away from the table.
Am holding off on TRN for awhile. I am beginning to like where they are priced at but will hold off to see if anymore bad info comes out to depress the price. Think they have possibilities, but will wait until more of the news shakes out. Kind of like PSEC, don't want to buy back in until I am sure that the shenanigans are through [spin-off of CLO's etc].
Have found the stocks I am interested in owning rather listless recently. Up a little & down a little bit [typical summer]. No real move up. Waited for the "Great Greek Catastrophe" which has not emerged - as I expected. So decided to reinvest in pre-existing stocks (already bought stocks). Bought more HASI & SBUX. SBUX seems to be a steady albeit boring stock. It seems to more or less head upward at a slow but steady pace. HASI is a bit more chaotic but am liking the direction it is going. Wish I had bought it at $14 instead of $18 initially but such is life. Think HASI will be a keeper for a year or more.
In a new direction - bought some WFM. Am thinking that WFM will be a steady performer; not glamorous, not a rocket stock, but a slow steady performer. Am thinking that maybe organic produce will become more ingrained with the American populace & people will start buying either at WFM or their new lower cost stores they are rolling out. We'll see how accurate my prognostications are.
Have been weaning myself off of the exhilarating, but useless testosterone high of rocket stocks that go up & down needlessly in a day. Adds drama to life that I don't need. Also causes me to look at the stock pages more than is necessary or useful.
Will still keep LXRX as my personal rocket stock & dirty little secret (delight). But am swearing off the rest for now. That said, if I could convince myself that FSC had bottomed, would buy more. Same goes for HTGC, & PNNT. Not really seeing it yet.
In the meantime back to sculpture, putting final touches on our 1895 Victorian home to sell it, & drumming up more business. Later.
Thanks WiseJ. Appreciate your memory of GAIN's previous actions. Know that GAIN is a good BDC, just not interested in buying at the top if it is going back down - as per previous history.
WiseJ - am thinking about buying some GAIN. They look fairly good but what am I missing about them? GAIN's price is not in the dumper like FSC & PSEC. Over last 3 months they had almost 8% price growth. Cant' find anything bad so far about them.
Definitely believe that FED will have at least one if not two interest rate raises this year. No question.
Roberts think you have a myopic view of the posters here. The FSC board is about, fancy that, - FSC - as well as other stocks that are interesting to people who have owned, are owners or intend to be owners of FSC.
Like most of the others here I have owned FSC on and off for the last 5 years or more. We buy when it is a good deal & sell when we think otherwise. We all seem to share a like for undervalued stocks which we tell others about - these stocks do not have to be necessarily BDC's.. Some of us like dividends, some don't, some don't care.
Your post implies that we are willingly going after "peanut" stocks (BDC's). Yes these stocks are priced at peanut levels but have interesting dividends. The reason to buy a BDC is when it is undervalued (under its' NAV) & if you think it will appreciate. Isn't that the basis for buying, owning, & selling stocks? Buy enough peanuts & you can make a side dish - if the stock buys are successful. BDC's are not a meal - neither are more "serious, grown up" stocks.
Are you still holding a Euro ETF? Been watching the gyrations of the Euro & also ULE (2X Long Euro ETF). Has a lot of up & down action. With Europe & IMF telling Greece to grow up & make some serious decisions - do you think the Euro is worth another look at?
Todays judgement will lead to euphoria & some more buying by optimists because of judgement. In a couple of weeks the price will settle & then finally TRN will become a better, longer term buy. Then I will venture back in. Also will see the effect, if any, of the sell off of TRN's galvanizing business to #$%$.
Wise, they have closed production in Venezuela until September. All the major car companies are stuck there with sunk money. TM [also own] has had production stopped since February & has not hurt stock. Was impressed that GM's CEO has turned down Fiats offer firmly to merge. GM getting smarter.
This week sold JCI for 20% profit & HMC for 10% profit. JCI is going to split off part of company - price went up on news - sold & it has gone down. HMC is stagnant for last 3 months.
Bought for long term (6 months or more) GM & ICE. Think GM has enough wampus to get to around $55 or $60. ICE is highest priced stock ever bought. ICE could get to around $375 fro its current dalliance in the $245 range.
For funsies & have trouble resisting a cheap, potential rocket stock occasionally, bought LXRX - a pharmaceutical stock with a diabetes drug & also one for carcinoid syndrome in the pipeline. Bought only a small amount so portfolio carnage (if any) is limited.
Not venturing any further into BDC's for awhile. Am underwater slightly in HTGC & ARCC. GARS & MAIN are doing okay. HASI [not a BDC] is doing well.
Sold JCI today. They are supposed to be looking to unload another part of their business. Good Time to take 20% profit & head for the doors.
Don't understand rights issue. Seems an exquisite device to screw investors. Sold PSEC a while ago for $8.30 & made some money. Not in again until smokes clears.
Three & Wise - just read an article this morning about how a leading UK store similar to Lowes/Home Depot had to close a bunch of their locations. Seems the younger generation is not doing DIY like they used to. Ergo, the stores supplying the do-it-yourself crowd are having worse sales. The article called these non DIY folks - "do it for me" people. Am thinking that if I were a parent today, would definitely steer my kids to the "trades". Pretty soon, the folks writing computer code will be making less money (so many have gone into the field - supply & demand) & there will be no one to fix their houses - meaning a shift to higher dollar construction jobs for skilled & prepared people. Maybe this is why the new residential construction is skewed toward rental properties.
A similar template is being seen in how 15 years ago you just had to have a web designer - now the tools are so easy for the normal consumer that the web designers have to scrabble harder & sell more esoteric products that no one understands just to make the same money they made 10 years ago. Now everyone is a "web designer".
Just like 20 years ago with the advent of easier & more plentiful computer graphic images - everyone became a graphic designer.
Agree with Phil. I think oil will be going up...slowly but up. Don't think we will be seeing $100 oil this year but next year probably. Saudis cannot keep pumping out oil to make the US drillers fold, paying 75% of their people to be in government jobs, & prosecute a "police action" in Yemen without financing this without higher oil prices eventually. Lots of their money going out for these projects with less money coming in for the oil they pump.
Had bee wondering along the same lines. Is it me or does it seem that all the new money that Greece is jockeying for now is to pay off older loans? It seems quite the musical chairs game until everyone but Greece has a chair to sit on.
Just downloaded yesterday Schwabs Street Smart Edge & am trying it out. Does anyone else have any experience with it? Have a feeling that there will be a bit of a learning curve with it.