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LJ International, Inc. Message Board

wcico6 22 posts  |  Last Activity: May 14, 2015 11:47 AM Member since: Jun 17, 2013
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  • They have addressed some of the analysts issues but not all.

    I don't see much upside for TICC. It will probably start a new range from $6.70 to $6.95 and the go down ex dividend. This is a high risk investment, too many fees, risky CLO obligations which may go way down in value and too much debt. Bad recipe. I should have seen this especially after...

  • I figured on a sell off today, but did not know how bad it would be. Came back nicely in the afternoon.

  • Reply to

    sell off? Bring it on

    by michaelmcmx May 4, 2015 10:17 PM
    wcico6 wcico6 May 6, 2015 11:31 AM Flag

    You have guts. Never buy into a falling knife. Better to pay a bit more when things are on firmer ground at a higher price. JMO....

  • Reply to

    The Death Spiral continues

    by michaelmcmx May 1, 2015 10:53 AM
    wcico6 wcico6 May 1, 2015 12:45 PM Flag

    Here are the four that are rated Overweight at JPMorgan and pay high dividends: Ares Capital Corp. (ARCC), Fifth Street Finance Corp. (FSC), PennantPark Investment Corp. (PNNT) and Solar Capital Ltd. (SLRC).

    Ares Capital

    This leading specialty finance company provides one-stop debt and equity financing solutions to U.S. middle market companies, venture capital backed businesses and power generation projects. Ares Capital originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments, primarily in private companies.

    ALSO READ: 3 Dividend Equity REITs to Buy for Strong Earnings and Forward Guidance

    The JPMorgan team believe the strength of company’s origination platform, sizable balance sheet and ample liquidity position it favorably in a very competitive investing environment. They also believe that with the current tight spread environment, Ares Capital has the scale and industry relationships to continue to make competitive, high-credit-quality investments. That is very solid for shareholders.

    Ares shareholders are paid a very competitive 9.8% dividend. The JPMorgan price target for the stock is $18. The Thomson/First Call consensus price target is at $18.27. Shares closed Wednesday at $17.15. The company will report earnings on May 4.

    Here are the four that are rated Overweight at JPMorgan and pay high dividends: Ares Capital Corp. (ARCC), Fifth Street Finance Corp. (FSC), PennantPark Investment Corp. (PNNT) and Solar Capital Ltd. (SLRC).

  • Reply to

    The Death Spiral continues

    by michaelmcmx May 1, 2015 10:53 AM
    wcico6 wcico6 May 1, 2015 12:43 PM Flag

    Management sucks. That is what you are buying. I am not selling here but this is the DOG of the BDC's

  • Reply to

    Selz Capital, LLC Reported New TICC Position

    by nyjets_0001 Apr 21, 2015 2:57 PM
    wcico6 wcico6 Apr 28, 2015 2:23 PM Flag

    I copied the info off of Yahoo. It may be misleading based on your link?????

  • wcico6 wcico6 Apr 27, 2015 11:07 PM Flag

    The stock is dead in the water. Don't be fooled. No float and the only buyer is Voss.

  • Reply to

    Selz Capital, LLC Reported New TICC Position

    by nyjets_0001 Apr 21, 2015 2:57 PM
    wcico6 wcico6 Apr 27, 2015 12:11 PM Flag

    End of year 2014. Big drop in institutional holdings

    Net Shares Purchased
    (Sold) (3,068,240)
    % Change in Institutional Shares Held (24.37%)

    Data provided by Thomson Financial

  • Reply to

    Something has to give.

    by michaelmcmx Apr 16, 2015 9:32 AM
    wcico6 wcico6 Apr 17, 2015 1:20 PM Flag

    It is ok if the lower the dividend and use the difference to buy back stock under NAV.

  • wcico6 wcico6 Apr 16, 2015 4:35 PM Flag

    Many many years ago GLUX was earning almost $1.00 per share and the stock price never went over $3.00. This stock is a loser. Too small of a company for anyone to take notice of. No dividend, No capital, one of the dog's of my portfolio for years and years and years. No one cares about this stock. It is dead money.

  • wcico6 wcico6 Apr 16, 2015 11:28 AM Flag

    All because of fuel costs. Getting rid of some poor routes.

  • Reply to

    THEY ALL GETTING RICH THERE, EXCEPT US

    by dexter.theiceman Apr 13, 2015 10:17 AM
    wcico6 wcico6 Apr 13, 2015 1:46 PM Flag

    Bad management. They had not repurchased any shares as of the last conference call. Management is out of favor with the analysts. Analysts are recommending many other BDC's and not TICC. Asset value has been going down almost every quarter. We picked the dog of the BDC's. Management needs to stuff ego's and work to get back credibility. This is a falling knife and it makes me sick.

  • Reply to

    Financing

    by bennta01 Mar 27, 2015 8:20 AM
    wcico6 wcico6 Apr 7, 2015 12:22 PM Flag

    Ann. This company has had one catastrophe after another and Voss has done a great job surviving through these difficulties. The problem all along has been the business model and the ways to generate income. The only source of income is from passengers. No other ties to travel, cars, advertising on the site that can generate other revenue. In addition, since he has gotten into trouble at various times, the company has to borrow money at over market rates, hurting the bottom line. At present they are paying 14% interest on the debt. Over the past 12-15 years the shareholders have received no dividends, splits and in fact the market value is down 66%. The other issue is "who is going to buy this company" and the answer is "no one" except for possibly the employees or Voss taking the company private at some low price per share. He has no competition, plus he is the majority owner and could make an offer of whatever he wanted. I hope he is an honorable man and does not screw the long term shareholders, but people are greedy, and nothing would surprise me.

  • Reply to

    Financing

    by bennta01 Mar 27, 2015 8:20 AM
    wcico6 wcico6 Mar 30, 2015 2:00 PM Flag

    Most of the big selling in the past has been the owner's wife. I have had this stock for it seems my entire adult life. I have been telling the CEO for eons that the business model sucks and needs to be changed. The CEO is very arrogant and thinks he knows everything. He is very smart but stuck in this model that does not work. I have always thought that at some point the owner would either file BKY and let the employees take it over or bring in another investment group and screw the shareholders. I am miffed by some of the CEO's business decisions. Is this the best he can do, operating the airlines for 20 years? $.79 a share, never a dividend pay out, paying interest rates on debt that are staggering, passenger miles cut in half, and I could go on and on. I believe the owner is honest, and directs his efforts toward his employees, however, if that is the case he should never have gone public in the first place. The shareholders deserve a reasonable return on its investment. If he can exit the company at $5 a share, that would give me less than a 3% annual non compounded return on my investment? At this point in time $5 is a pipedream..

  • wcico6 wcico6 Mar 23, 2015 8:09 PM Flag

    Agree. Something is amiss here. But it could be bad management, BDC's being out of favor, TICC risky portfolio, analysts not recommending it, and institutions fleeing and running for the hills, which is putting extra ordinary pressure on the downside. Dividend is out of whack with the market and net asset value seems to have downward pressure also. I would not be a buyer with all of these unknowns. I am holding like the analyst suggested and hope management does something to right the ship. Pigs get slaughtered.

  • Reply to

    Out of Favor with Analysts

    by wcico6 Mar 20, 2015 9:42 AM
    wcico6 wcico6 Mar 20, 2015 3:29 PM Flag

    I understand your position and do agree that if one does not plan on selling, and income is all one is interested in, the price of the stock is irrelevant to some degree. . The risk is the dividend being cut, the price of the stock going down, and due to the weighted risk of the portfolio and large debt load, the company going under. That is what an analyst is looking at, in giving a rating to the public for a particular investment. Of most importance, analyst look at management, which in the case of TICC are in the analysts crapper. Funds that invest in these risky BDC's flee when the price drops like a falling knife. Funds report quarterly on a price per share, book value, so they don't want to hold onto a falling knife no matter what the yield is. I am no expert, but I do agree that TICC can rebound closer to book value if they take notice and fix some of the reasons why the stock is down. I own 4000 shares of ARCC that I bought in 2009, which at a 9.80% yield has given me a much better total return than TICC. I attribute the difference to horrible management at TICC. Be well.

    Sentiment: Hold

  • Reply to

    Out of Favor with Analysts

    by wcico6 Mar 20, 2015 9:42 AM
    wcico6 wcico6 Mar 20, 2015 2:26 PM Flag

    Analysts are required to weigh risk and reward, rate investments so their clients can make an informed decision of portfolio balance. One would think that with TICC selling at 22% below book, and a 16% yield the analysts would be recommending it. Compared to other investments in the market, although not yielding as much as TICC, the Analyst feel the alternative is safer, maybe more price appreciation, and more proper for a weighted portfolio. My belief is that much of the recent volume was due to institutions pulling out of the stock for the very reasons the analysts are shying away. We shall see when institutional sales come out at the end of the first quarter. If one bought the stock at $10.00 or more, the 15% return is irrelevant as the investment is down 33%; book value is down to only $8.60 so one purchased the stock at a 14% premium to book value. Looking like a #$%$ investment. I am not selling at this level, but not a happy camper.

  • I spoke to one of TICC analysts. Not very impressed with management. Reasons. High fees - Risky CLO investments which will go down in a increased interest rate market - too much debt - Accounting practices. Having said that the person that I spoke to thought that if the market remains somewhat stable that for the next two years that TICC could maintain at or near its current dividend payout. He also told me that selling more shares would not be a wise move and would hurt the stock price. The analyst gave me 4 other BDC's they are recommending over TICC which they feel are less risky and better run.

  • Reply to

    I have owned TICC for over 7 years.

    by wcico6 Mar 16, 2015 4:42 PM
    wcico6 wcico6 Mar 17, 2015 12:52 PM Flag

    I don't see much upside for TICC. It will probably start a new range from $6.70 to $6.95 and the go down ex dividend. This is a high risk investment, too many fees, risky CLO obligations which may go way down in value and too much debt. Bad recipe. I should have seen this especially after listening to the conference call. I would bet if you talked to any analyst covering the stock they would agree with me.

  • Reply to

    I have owned TICC for over 7 years.

    by wcico6 Mar 16, 2015 4:42 PM
    wcico6 wcico6 Mar 16, 2015 7:02 PM Flag

    The price of the stock normally goes down on the ex dividend date. That was expected. The announcement of a stock offering shortly after the announcement that shares were going to repurchased is alarming to me. After the ex dividend date they could have gone into the market and purchased shares at a 17% discount to book value. Now, they can be purchased at 22 % discount to BV. Who knows how far this will fall. I am quite sure that institutions were the main sellers. The fund managers are probably as miffed as I am. does anyone remember the name of the analyst from Wells that questioned management on the conference call? I would like to call him to get his perspective.

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