Fifth Street Finance Corp. NASDAQ $FSC Correlation Histogram
FSC X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks Sep-2016 1,000 Day Parameter 2,830 NASDAQ Stocks Price Analysis This stock mode of correlation coefficient is 0.7 In other words, the correlation coefficient of the other s
Phil and Kel, I just bought more AMZA @ 9.37, since I am unable to afford AMZN at $1000 @ share.!! The 10% distribution on InfraCap's MLP is juicy enough ... I'll buy more at lower prices. GL gentlemen
EPD.....looking good?...I bought some last week @ 26.82. It almost immediately went up to the 27.50 area, and has since retreated back down to around 26.90 (1:20 PM Central, Monday, June 12). It's about the highest quality MLP out there. Yields about 7% and raises its payout EVERY QUARTER. I placed a small position in my IRA account so I don't have to worry about the K-1 problem. Worth a look anyway IMHO.
Does FSC stand a chance for a rebound after the recent rate increase? Is $3.90 a good buy in price?
FSAM in default. It can't pay any more dividends. Lenders telling FSAM to sell fifth street properties. FSAM with no buyers at the table right now, is seeking to wind down their business. The clo platform and FSC and FSFR contracts for sale. Hedge fund is closing down. It's the end of the line for FSAM and a new beginning for FSC and FSFR.
Added some BGR (energy related CEF) @ 13.13. Previous buy last week @ 13.40. Pays monthly, about 7% yielder.
Yahoo Finance Insights
FSC reached a new All Time Low at 4.00
Anyone here DRIP there Dividends ? I trade with Fidelity and started Dripping again as the stock prices were low. I was surprised to see the the Drip shares priced at a very high price . Fidelity shows buying shares from 2 to 7 days before the pay day at the highest possible price. Fidelity may be screwing investors on this.
Anybody else having trouble getting to Yahoo portfolios? Could not access all day yesterday and still can't.
For general discusion:
GBDC is issuing another 1.8M shares. Second SPO in less than a year. Plus I noticed the GOLUB brothers cashed out of 956K shares each @$18.52 in February 2017.Total holding now of zero. Wells BDC analyst always rated GBDC in the top tier of BDCs. They did pay a special in December 2016..... Anyone follow this BDC?
Took a flier on CBL today at $7.50. Mall REIT, probably the most disliked stock sub-sector going today. Fire sale prices on all, including the best managed ones like CBL. Been on my watch list for a while. Missed the chance to buy even cheaper, but I figured $7.50 was a good enough entry. Just a small position, as I'm waiting for the bottom to drop out of this entire market before committing serious amounts of money to anything.
Bored.....added some GGN to my taxable account @ 5.68. Previous buy @ 5.26 last year. Nice yield of 10%+ from 5 cent monthly dist. GGN had many problems and div reductions in the past several years, but seems to have stabilized in the last year. Hold precious metal and energy stocks and heavily writes call options on the portfolio. Most of the div is ROC (return of capital) due to the option writing.
FSC......tempting? Mar. 31 NAV was $7.23. At some point this has to be a value play. Just reviewed the March 1/4 report. There is some real ugliness here, but selling at a 40%+ discount to NAV? Kind of watching by accident thru the use of this message board. Otherwise, not currently looking at any BDCs.
DRRAX Dreyfus Real Return A Alternative Mutual Fund
I have mentioned this investment before and like it better every day. This is a Mutual Fund do me pumping it does not move the price. The portfolio consists of a S&P Futures Short position ,Gold, Government Bonds and Utilities . It yields 2-3% and has averaged a total return of over 3.5% over it life. I currently have 2% of portfolio in this fund and would like to double it but it goes up most every day. It seems to chug along in good times and bad. A very good deal with a Fidelity Account as load and trading fees waved on 90 day hold.
DRRAX - Dreyfus Global Real Return Fund Class A | Fidelity Investments
Bought some BGR, an energy CEF.....in @ 13.39. Pays .0776 monthly for a 6.95% annual yield. Not leveraged and writes some calls against holdings. Figured that I'm up to my eyeballs in energy already (mostly SWN), I might as well make some yield while I'm at it. Placed some in my taxable and IRA accts.......link to CEFConnect...>>>......Kel
BGR BlackRock Energy & Resources, closed-end fund summary - CEF Connect - Brought to you by Nuveen Closed-End Funds
This is William Packers opinion: The Devastating Destruction Of All Things Medley And Fifth Street
May 25, 2017 7:41 PM ET|Includes: Fifth Street Asset Management (FSAM), FSC, FSFR, MCC, MDLY So here we are again. Medley capital stock (NYSE:MCC), and Fifth Street Finance are trading back down to their historic lows. However, so are the management companies behind them. Both Medley Management (NYSE:MDLY) and Fifth Street (NASDAQ:FSAM) have suffered nearly 70% losses or more since IPO. Anything with the Medley or Fifth Street logo attached to it has become a poster child for poor performance and high expenses/fees. This has resulted in the stocks performing much worse than their peers.
Its hard, because as value investors we always try find value and take that value as an opportunity for investment. Unfortunately, it doesnt always work out that way and we get trapped into a free-fall and we try to dig ourselves out. Some of us do this by selling and moving on to the next best investment idea, others do this by trading the security over and over to average down, and others put even more capital in to average down in the hopes that eventually the stock price will go up and they can get out of it without a loss. So many of us "value investors" have had our share of losses over the years that we had to make up for. I have personally fought so hard to stay in the black since 2014. I never thought it would be this hard or that loan losses at many externally-managed BDCs would be this high in a fairly benign credit environment.
But for the two externally-managed BDCs, Fifth Street Finance (NYSE:FSC) and Medley Capital corp, and that is exactly what happened and its left investors wondering when it will finally be a good time to buy. I can't tell you that answer, but I can help you to understand why now is a better time to buy than ever before. First, changes are coming to our sector. Externally-managed BDCs are no longer held up by institutional or retail investors. That means the model no longer supports growth as they trade well below NAV (at least many of them still do). Something has to give, and whats standing in their way is the external managers themselves. The model simply does not work when you charge nearly 2% on total assets (which is a 4% management fee on our capital if they use 1:1 leverage including capital invested via SBIC) and they also charge you their incentive fee which is around 20% of all net investment income! The net result is that nearly 50% of cashflows, and i am talking cashflows here not profits after loan charge offs, flow back to the management company. So who really owns the company? Is it the shareholders or the external management? Certainly it is the shareholders who are suffering the direct losses while the management team syphons off as much money as it can over the lifetime of the BDC. The external managers, MDLY and FSAM, have been trying to throw a bone to investors as loan losses have piled on. They are only compromising as much as they have to and not as much as they should. They have to compromise as they face losing their asset management contracts during a time when white knight activist investors are on the rise in the publicly-traded BDC industry. FSAM has already fought off one activist in early 2015. This is all too little too late though, as investors have caught on to the deception and the inability for these asset managers to produce profits for their investors. The goose has already been cooked. Now that their BDC share prices are approaching 50% of NAV, and investors still not really interested, the situation has presented itself for new activist investors and others interested making money by winding down the BDCs to come forward and take away the keys of the kingdom from the external managers. I recommend that investors keep these two BDCs on their watchlist for any news of another activist push or sale of either externally-managed asset manager. However, its much more likely FSAM would be sold than MDLY as MDLY is a diversified asset management platform with less permanent capital than FSAM. FSAM also just mentioned on their conference call that they are downsizing their business. That means they are selling or winding down various pieces of their asset management business. Two pieces brought up on the FSAM call were the CLO business and the hedge fund. They are trying to find buyers for the CLO business and they are closing down the hedge fund. This is the beginning stages of winding down FSAM entirely. You see, FSAM needs to be simplified so a buyer can come in and make a bid, knowing that they are just buying the two asset management contracts for Fifth Street Finance and FIfth Street floating rate. (NASDAQ:FSFR).
Next I'd like to point out that both FSAM and MDLY have negative equity. Yeah, that's right, both companies are not really worth anything unless they SELL their asset management contracts of their BDCs which requires shareholder approval on the BDC level. The only way the BDC shareholders would ever approve of a sale and allow for the external managers to get something instead of nothing would be if the deal threw some kind of bone to the BDC shareholders. That bone could mean lower management fees, or fee concessions for a period of time, or both. It could also mean access a larger and more sophisticated team of professionals to manage the BDC, resulting stronger returns for investors. In other words, they need to sell the idea to the BDC shareholders which is never an easy thing to do but with the stocks trading around 50 cents of stated NAV i find it much more likely that shareholders would say yes to a new manager.
This entire industry is going through some serious changes and its very likely that the BDCs we know today will not be the BDCs of tomorrow. The external managers are not going to exist in the same way they do today and its much more likely that in order to manage a BDC, you are going to need a large asset management platform with the team already in place so that you can provide shareholders the lowest cost fees possible. Otherwise, the model just doesnt really work and so there won't be any more of these new money-sucking asset managers with high fees anymore. It will only the largest and most sophisticated asset managers that can brag about their BDC asset management division as it will only make sense on that level of scale in order to compete with the fees that an internally-managed BDCs charge today. Then and only then will externally-managed BDCs be able to sustain premiums to NAV that allow for new capital to be raised accretively and for the betterment of everyone involved.(shareholders, managers, lenders to the BDC)
As for MDLY and FSAM. Its hard to say how the end will come and when but we know its getting closer every day that passes. Fee pressures will remain, MDLY and FSAM earnings will stay depressed and the dividends of both entities should decline as neither one is currently covering their dividend. MDLY is the worst as its paying out about double what they make in core income. Investors are starting to wake up and you can see it in the stock prices of MDLY and FSAM. You can see the writing on the wall. The destruction isnt over for these externally-managed "CLASS A" stocks. The investors for these asset managers don't even have real voting rights. They are just vehicles for real owners of the asset management companies to sell on the market to make themselves rich. Look how Len T, the CEO of FSAM has converted millions of shares into the sellable class of stock. Its my opinion that they are looking for any chance they can get out before the hurricane thats coming destroys whats left of their asset management businesses. The time for change is now.
Something not good is up - anyone have any facts on why price is down so much today?