FSC will be over $6.25 before the transaction with Oaktree takes place in q3
Preferred share closed end funds reducing dividend payouts. Popular CEFs like FFC are reducing dividend payouts by 3-8% due to a rise in cost of using leverage with a lower yield from new preferred share entries. Makes sense, they are going through the same conundrum that BDCs are in terms of nowhere to place new money to get the same yields on investments of a few years ago, AKA yield compression.
hey phil, so you think JMP and Deutsche got their upgrades wrong? What do we professionals on this chat board know that they don't? GL
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
OakTree sealed the deal for FSAM. No common shares are included in the deal , new management and a new BOD and fees cut. I will wait for the portfolio to be flushed give it a hard look. But now it's party time on the Titanic with the price being bid up no mind the iceberg:) When it tops out in the short run it will be a nice short until OakTree cleans the deck with writedowns.
would it be worth buying any fsam??
Mr.Phils Capital currently rates any thing Fifth Street as don't even think about it until portfolio flushing is accounted for in a earnings report.
Looks like this is heading to $7 soon ..
FSC will be over $7 after the Oak tree funds take over management
7-18 Deutsche Bank upgrades to BUY...
Sometimes holding out pays off.
Don't bet on this stock reaching $5.oo
JMP upgrades to "outperform"...
Cha Ching....many people are liking this news.
Not sure about this stock, too unpredictable.
Back into SCHP.....Schwab TIPs ETF..........was in earlier this year but traded out for awhile at a slightly higher price.. Almost, but not quite like a MM fund that yields just over 1.5% annually and pays monthly. Anyway, I consider it almost like CASH and I can trade out of it if other great opportunities would arise if we EVER get a decent selloff.
Kel........Have a happy 4th all..
Getting to buy an oak tree fund at 68 cents on the dollar is a pen excelllent deal. Post close, it's gonna be a 115+ cents on the dollar fund
Do people no understand oaktree is buying fasm not fsc????????
Nice 15% pop on news of potential management change. I continue to believe fair value is closer to $7. I am content being paid 12% to wait for the market to recognize the value in FSC's holdings.
Last year ARCC acquires ACAS. Now OAK want to buy out FSAM. ARCC & OAK are probably the two largest BDC companies and both have pretty good reputation. If Leonard Tannenbaum (LT) can close this deal, it should be good for the share holders of FSC FSFR and FSAM.
From the Class Action fired by FSC big share holders against FSAM last year, FSC is on the track of improving. As of March 31 this year, FSC had 8 investments on nonaccrual, down from 11 investments in the previous quarter. But overall, the target investment return rate set at FSC is mediocre (about 7% to 8%). Oaktree definitely can do better. (ARCC is quite good too and traded around NAV)
I guess FSC PPS should keep on climbing, especially when it begin to pay 12.5cents dividends since Q3. It looks like OAK deal can be made without the approval of FSC share holder, it means the contract between FSC and FSAM will be carried over (1.75% management fee which is standard in BDC industry).
The OAK deal should present no harm to FSC anyway, keep on waiting should not a bad strategy.