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BP p.l.c. Message Board

zmarzz 43 posts  |  Last Activity: Dec 15, 2014 9:31 PM Member since: Jan 19, 1999
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  • Reply to

    Dividend

    by peon55 Dec 13, 2014 10:04 AM
    zmarzz zmarzz Dec 15, 2014 9:31 PM Flag

    I read the FSAM news release. They acknowledged that FSC and FSFR are both below net asset value. They seemed to imply that was going to hit them. I will listen to conference call tomorrow. I am certain they will be asked by analyst how they going to grow if their two major funds (FSFR and FSC) are both way below net asset value.

  • Reply to

    Dividend

    by peon55 Dec 13, 2014 10:04 AM
    zmarzz zmarzz Dec 14, 2014 10:33 PM Flag

    FSAM reports the earnings tomorrow after the market closes. There should be details in there about how they intend to grow the company, which is going to have to mean how to make FSC and FSFR grow.Also, the conference call the next day should be worth listening to!

  • Reply to

    Dividend

    by peon55 Dec 13, 2014 10:04 AM
    zmarzz zmarzz Dec 14, 2014 10:28 PM Flag

    I did some research on FSFR. The original stock offering was 6.67 million shares at $15/share. FSAM paid all the fees out of their own pocket. The secondary was 22.8 million shares at $12.13 after all fees and charges were taken out. Multiply 6.67 times $15 and 22.8 times $12.13 gives a grand total of $376.8 million. Divide this number by 6.67 + 22.8 gives a composite net asset value of about $12.78. Note that the underwitrers could have exercised an option to buy more shares, etc. In any event, I think the company has maintained the NAV pretty well, though obviously the investors in the ipo got ripped off very badly!

  • Reply to

    Dividend

    by peon55 Dec 13, 2014 10:04 AM
    zmarzz zmarzz Dec 14, 2014 10:45 AM Flag

    I agree with you that the dividend should not have been raised in the first place. However, I doubt very much that the dividend will be reduced anytime soon. More likely is that there will be some combination of higher interest income, lower interest costs, and reduced management fees to make up for the $3 million shortfall that prevents the company from being able to fully fund the dividend each quarter on an ongoing basis.

  • Reply to

    Enlighten me plaese

    by za_hoshu Dec 12, 2014 11:43 AM
    zmarzz zmarzz Dec 12, 2014 10:09 PM Flag

    One other comment I would make. Management could cover the higher dividend rate easily if they reduced the total administrative burden on the shareholders slightly. Last quarter FSAM took a total of $25 million to cover all costs except interest. If FSAM reduced this figure to $22 million. The $3 million is equivalent to 2 cents per share since FSC has about 150 million shares outstanding as I recall.

  • Reply to

    Enlighten me plaese

    by za_hoshu Dec 12, 2014 11:43 AM
    zmarzz zmarzz Dec 12, 2014 10:03 PM Flag

    I agree with everything you say, but I can add some details. In my opinion, the dividend was jacked up in order to lift the share price above the most recent net asset value. Remember, the company can not sell shares below NAV! Once that was accomplished, then the SPO was able to take place. Note also that the share price had to be at least 2 or 3 percent above the NAV in order for the company to offer the new shareholders a small concession on price and still remain above nav..

  • zmarzz zmarzz Dec 12, 2014 9:51 PM Flag

    Given the nav of FSFR of $12.65, and the high degree of leverage it is trying to use (200 percent), why is $1.20 so difficult to achieve? BDCs can not use that much leverage but FSFR is not a BDC.

  • zmarzz zmarzz Dec 12, 2014 11:26 AM Flag

    Do you have any idea why FSC crashed in price today? I am not aware of any news and their exposure to energy is quite limited?

  • Reply to

    FSFR is a SELL

    by thewisejman Dec 10, 2014 10:24 AM
    zmarzz zmarzz Dec 10, 2014 9:00 PM Flag

    I am confused here. I thought that when the secondary stock offering was completed, the net asset value fell to $12.80. From that point to the current day, the net asset value fell from $12.80 to $12.65.

  • Reply to

    You may really want to consider selling FSFR

    by thewisejman Dec 9, 2014 9:22 PM
    zmarzz zmarzz Dec 10, 2014 8:58 PM Flag

    It is noteworthy that FSAM announced that no more shares of FSFR would be issued BELOW net asset value. FSAM must have taken tremendous heat for what they did earlier this year with their secondary stock offering. I am surprised that people did not complain to the Securities & Exchange Commission.
    By the way, FSAM itself is doing very poorly. It was supposed to be a $24-$26 stock and is now below $13.
    I think people are beginning to realize that If FSC and FSFR are not doing well, then there is no way on earth that FSAM is going to grow their own income.
    People should pay close attention next week when the quarterly report for FSAM is announced. They will announce their plans, if any, to squeeze more money out of the shareholders of FSC and FSFR.

  • Reply to

    PSEC may not stay low for too long

    by thewisejman Dec 9, 2014 2:25 PM
    zmarzz zmarzz Dec 9, 2014 8:21 PM Flag

    I trust FSC more even though their management fees are very high. I have confidence that their numbers are genuine and they will never have a problem with the SEC.

  • zmarzz zmarzz Dec 8, 2014 2:12 PM Flag

    There are not going to be any spinoffs in the near future. Ain't gonna happen!

  • Reply to

    Insider Buying?

    by wantallottamo Dec 8, 2014 8:37 AM
    zmarzz zmarzz Dec 8, 2014 9:59 AM Flag

    Please spare me. I have been saying for a long time that PSEC is trash. While the dividend has been slashed, do you see any mention of a reduction in management fees??? The problem is not that the dividend is so high, but rather that PSEC management fees and charges are nearly the highest in the nation
    of any publicly traded business development company.

  • Reply to

    Anybody else think this price is crazy?

    by tobypharma Oct 14, 2014 3:51 PM
    zmarzz zmarzz Dec 7, 2014 9:36 PM Flag

    What happens if FSAM tries to do the same thing again next year to the shareholders of FSFR? If you read the transcript of the FSC conference call, one of the analysts asked that very question!

  • Reply to

    paying 30 cent dividend the next 2 quarters..

    by sam_0534 Nov 26, 2014 7:42 PM
    zmarzz zmarzz Dec 7, 2014 5:48 PM Flag

    Hi:
    Do I understand this correctly? The management got permission from the shareholders to triple the number of shares outstanding by selling new shares at 25 percent below net asset value of $15, thus causing the net asset value to fall to $12.80?

  • Reply to

    Market is pricing in dividend cut

    by seventiesveteran Dec 5, 2014 12:06 PM
    zmarzz zmarzz Dec 5, 2014 3:29 PM Flag

    I agree with you. This stock is trash. If the company can not make the case at the annual meeting, when can they make it???

  • Reply to

    We've been here before

    by eagles123 Dec 1, 2014 4:14 PM
    zmarzz zmarzz Dec 4, 2014 3:41 PM Flag

    I have said in a number of posts recently that PSEC is trash! I wish I had taken my own advice. I sold most at $10.09, unfortunately, I hung on to 30 percent of my original position hoping that a miracle would happen.I expect some very bad news to come out tomorrow at the annual meeting.

  • Reply to

    Annual meeting

    by fastphil10 Dec 4, 2014 1:07 PM
    zmarzz zmarzz Dec 4, 2014 1:43 PM Flag

    I agree with you. Hopefully, we will find out tomorrow whether or not the company is likely to survive in its present form. It is ironic when you think about it: This company bought Patriot Capital when they were about to fall into the abyss, and now the shoe may be on the other foot!

  • Reply to

    New Fresh Hell

    by tulsadevlin Dec 1, 2014 3:57 PM
    zmarzz zmarzz Dec 2, 2014 2:53 PM Flag

    The management is ripping off the shareholders with the HIGHEST management fees in the nation. If you look at the most recent quarterly report, deduct interest payments from the net investment income, giving you about $62 million. Then calculate total management expenses paid to FSAM, which comes to about $25 million. $25/$62 is .41 or 41 cents of every dollar of cash flow is paid as management fees. Based on a recent Seeking Alpha article, this is the highest in the country for a publicly traded BDC.

  • Why the huge drops in price today? Is it because of tax loss related selling?

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