This company is a piece of trash. The management fees are very high, the underwriting is poor, and after the dispute with the SEC, does anybody believe a word they say?
Apparently, FSIC is switching to quarterly dividends for next year. I am guessing that the new payment dates
will be the beginning of March, beginning of June, beginning of September, and beginning of December.
I was disappointed. We did not even come close to covering the dividend and net asset value per share is dropping at the rate of one percent every three months! We must have some real trash in our portfolio.
By the way, I noticed a significant amount of DEPRECIATION on the balance sheet when calculating net asset value per share. Is this because of depreciation on their real estate investments?
I am sorry to say that the IPO we thought was gone for good has come back!
The news came out late this afternoon that FSAM would go public at $17/share or so. At least the share price
got punished. I thought they were trying to get $24-$26 originally.
Remember, people, that FSAM told everybody when they jacked up the dividend that our net investment income would go up in the near future to back this kind of payout. If that does not happen, I urge everybody to complain to the SEC in writing! Demand that FSAM be removed as our manager! Insist that the SEC conduct an investigation! From what I can see, there was never any chance at all that our earnings would go up AND our net asset value per share would remain stable. In my opinion, this was simply a grotesque manipulation of our share price so we would jump above net asset value and thus allow a stock offering to take place above current net asset value.
I was wondering about that. I have no shares of FSFR but is it legal to offer a large number of shares at such a huge discount to the net asset value???
Unfortunately, you are right about the IPO merely being POSTPONED, as opposed to being CANCELLED.
Even so, they are now going to be under pressure to get decent results from FSC and FSFR. Also, my gut feeling is that the postponement is going to last at least 3 months.
Actually, compared to PSEC, the shareholders of FSC have it easy!!! FSC does not sell stock through dividend reinvestment plans below net asset value. Also, FSC does not offer shares through their at the market program below net asset value. Also, FSC does not collect management fees on cash. Finally, FSC accounting appears to be on the up and up; as far as I know, they have never had any run ins with the Securities & Exchange Commission. This is important because I trust the FSC net asset value calculation!
Finally, some good news! The IPO for Fifth Street Asset Management has been withdrawn. I think that FSAM realized that they had a lot of work to do as far as improving the results at FSC and FSFR.
You're right that FSC was way behind other business development companies in that respect. This shows the C O N T EM P T that most investors have for the management of FSC. The discount to net asset value for FSC is now greater than the discount to net asset value of PSEC.
FWIW, late in the afternoon, I sent ir at FSC an email asking if any of their 100+ portfolio companies have filed for bankruptcy recently. Note that a bankruptcy filing is a matter of public record. I also suggested that they issue one of their shareholder newsletters which they done from time to time in the past.
IR at FSC is generally very good about responding the next business day, so I will post anything that I get back. Frankly, I am mystified as to why FSC keeps dropping. The volume each day is not very high. I can only guess that there are far more sellers than buyers right now.
I just got an email message from ir at FSC-KeyBanc can not sell shares minus the sales commission for less than most recent report NAV per share.
You should be aware there is a Chinese company that makes extremely high quality fake bullion gold coins.
The coins are essentially clad coins with an outer layer of gold and a core of a highly dense metal with nearly the same atomic weight as gold. This is legal in China provided that the company advertises the fakes as "fakes."
Are you certain that FSC management can not issue shares below NAV? They hired KeyBanc Capital Markets to sell $100 million dollars worth of stock at the market recently.
When you say management's irresponsible way of diluting shares, are you saying that FSC management is selling shares BELOW the most recent figure of $9.71/ share book value?