|Bid||20.85 x 900|
|Ask||20.85 x 1000|
|Day's Range||20.78 - 20.91|
|52 Week Range||17.75 - 21.24|
|Beta (3Y Monthly)||0.63|
|PE Ratio (TTM)||9.91|
|Forward Dividend & Yield||1.56 (7.51%)|
|1y Target Est||N/A|
(Bloomberg) -- Nearly a year after it began looking to ease its hefty debt load, Ferrellgas Partners LP is mired in a dispute with its most important lender and running out of time to turn things around.The second-biggest U.S. distributor of retail propane is tangling with TPG Specialty Lending Inc., which provides a $575 million credit facility that makes up the bulk of Ferrellgas’s liquidity. According to the company’s annual 10-K filing, Ferrellgas failed to deliver its financial results by the Sept. 24 deadline, delivering them a day later after TPG said it was in default.That’s not right, Ferrellgas said in the filing, adding that it will vigorously contest the matter. But TPG may allege another default because the auditor’s statement includes a warning that there’s substantial doubt about the company’s viability, Ferrellgas said. As a result, it may be forced to restructure, sell assets or pursue other financial transactions. Shares plunged on the news and currently trade at about 69 cents, compared with $1.89 a year ago.Ferrellgas didn’t respond to a request for comment, but the filing shows it’s getting advice from Moelis & Co. and Squire Patton Boggs LLP, and that talks have been going on since TPG asserted the default.TPG Specialty Lending, which is tied to the giant TPG Sixth Street Partners credit investment firm, declined to comment. Moelis declined to comment and Squire Patton didn’t offer a response.Ferrellgas risks accelerating payment on some of its roughly $2 billion debt load and crimping its liquidity if it can’t satisfy TPG. The company reported just $11.1 million in cash at July 31 and $155.1 million of availability under its under senior secured credit facility, which includes a $300 million revolver and a $275 million term loan. It also needs to figure out a way to refinance $357 million of bonds maturing in June.A group of holders of the operating company’s debt are getting advice from Stroock & Stroock & Lavan, and they’re contacting potential financial advisers, according to a person with knowledge of the matter, who asked not to be identified discussing confidential matters. A separate group that holds a mix of operating and holding company debt are working with Davis Polk & Wardwell LLP and Ducera, according to people with knowledge of the matter.Representatives for Stroock, Davis Polk and Ducera didn’t respond to requests for comment or didn’t immediately comment.Some investors have expressed interest in injecting new money, according to a person with knowledge of the company’s efforts. Management expects there will be adequate liquidity and enough time to bolster the balance sheet and deal with the 2020 notes, said the person, who asked not to be identified discussing confidential plans.Blue RhinoFerrellgas serves residential and business customers with propane for space heating, water heating, cooking and other appliances, and it supplies portable tank exchanges under the Blue Rhino brand for outdoor gas grills.Co-founder and Chairman Jim Ferrell, who has been involved with the company since 1965, returned in late 2016 to turn around the business after its managers made an $837.5 million bid in 2015 for Bridger Logistics LLC that sent the company off course. It borrowed heavily to acquire the midstream oil and gas business, only to end up selling the assets in pieces for a fraction of the price a few years later, with a vow to stick to propane.“This is what we do best,” Ferrell told investors during a December 2018 earnings call. “And we’re not going to stray again.”Busy SignalCreditors have been waiting for the company to engage in negotiations, but meaningful talks have yet to begin, according to people with knowledge of the matter. Its 2020 bonds, which are issued by the holding company, trade at 75 cents on the dollar, to yield about 58%. The remaining bond maturities in 2021 through 2023 are the responsibility of the operating company, and those trade around 84 cents.Ferrellgas has a 9% market share, but its retail margins are narrower than peers such as AmeriGas Partners LP, the largest retailer, and Suburban Propane Partners LP, the third-largest, because it cuts prices to compete on volume, according to S&P Global Ratings. Analysts have speculated over whether Ferrellgas could be acquired by one of its stronger competitors. AmeriGas was acquired two months ago by UGI Corp.S&P cut Ferrellgas one notch to CCC- on Wednesday, saying that a default or distressed exchange is a “virtual certainty.” It’s an inherently risky business, S&P said, because propane sales are tied to temperatures in winter, and the upcoming one is expected to be warm. It doesn’t help that more U.S. households are likely to convert to natural gas to heat their homes to take advantage of plunging prices.(Updates with default details and share price starting in second paragraph)To contact the reporter on this story: Allison McNeely in New York at email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, Nicole BullockFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has affirmed TPG Specialty Lending, Inc.'s (TSLX) long-term issuer and senior unsecured debt ratings at Baa3. The affirmation of TSLX's ratings is supported by the company's continued strong financial performance, as evidenced by its superior profitability, consistent with its results since the 2014 initial public offering. TSLX continues to maintain a strong asset mix, focused on first-lien investments, and solid asset coverage.
What does "on the cheap" mean in the stock market? To me, it means stocks which are valued not only below fair market values when looking at assets and revenues, but also when looking at the proven progress underway in the company.So far this year, the general stock market has been on a tear. The S&P 500 has climbed in price by 21% year-to-date. * 10 Battered Tech Stocks to Buy Now But I can easily steer you to a collection of stocks with much more reasonable, and even ample, dividend yields. And this is a collection of stocks that are performing -- but are also still values to buy right now.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dividend Stocks to Buy: AllianceBernstein (AB)Dividend Yield: 7.5%AllianceBernstein (NYSE:AB) is a pass-through company in the asset management business. The key thing about asset managers is knowing the value of assets under management. They don't have to be exceptional in their investing -- just good enough to attract and keep assets on which they earn fees year-in and year-out.AllianceBernstein's assets under management has climbed 25.8% over the trailing four years to a current $581 billion. That has resulted in revenue gains for the same period of 30.1%. This in turn is driving higher returns for shareholders with the return on equity running at 14.9%. But the real deal is that the shares trade at a discount to revenue by some 18.7% making the shares cheap.AB stock has been a good performer with the trailing five years generating a total return of 60.4% with an average annual equivalent of 10.4%.**All total return figures were calculated by Bloomberg Terminal, factoring in dividends reinvested on the day of distribution. Compass Diversified (CODI)Dividend Yield: 7.6%Compass Diversified (NYSE:CODI) is an investment holding company set up under the Investment Companies Act of 1940. As such it operates without paying federal corporate income taxes, meaning that CODI has more cash for dividend payments to investors.The company buys and owns a collection of well-branded industrial and consumer goods companies. And it in turn works with management teams to further develop business values. From time to time, Compass Diversified will sell the companies when appropriate. Along the way, CODI collects cash flows from the operating companies and in turn pays an ample dividend currently yielding 7.6%.Revenues are firmly on the rise with the trailing year's sales gain at 33.2%. Margins are positive, helping to drive a return on shareholder equity of 39.3%. * 10 Stocks to Sell in Market-Cursed September And the stock is very cheap as it is valued at a 30% discount to trailing sales -- which as noted are firmly on the rise.Compass Diversified continues to deliver with shares generating a total return over the past five years of 62.1% for an average annual equivalent return of 9.9%. W.P. Carey (WPC)Dividend Yield: 4.7%W.P. Carey (NYSE:WPC) is a highly successful real estate investment trust with a diverse collection of properties across segments. But these properties all have in common is the company's signature structure of triple-net sale-leasebacks. This is where W.P. Carey typically acquires a property from a significant company -- or even government entity -- and in turn leases it back to the seller for long-term lease. In addition, the tenant pays the taxes, insurance and general upkeep costs, hence the term "triple-net."This structure has major benefits. To start, W.P. Carey gets established tenants for their leased properties. And with longer-term leases it sets the company up with more dependable income. With the expenses of taxes, insurance and maintenance it reduces costs and uncertainty for the company.Revenues are up for the trailing year by 4.4%. The return on funds from operations, which measures the profitability of just running the properties, is at a very healthy 12.8%.The dividend is yielding 4.7% and the actual distributions have been rising each and every quarter for years. Some estimate that it has been raising dividends since 2001. The stock has generated a trailing five year total return of 77.2% for an average annualized equivalent return of 12.1%.And despite the quality of the company's assets and performance along with that rising dividend distribution, the stock is cheap compared to the general REIT market -- as measured by the Bloomberg U.S. REIT Index. The stock's price is at a mere 2.2 times book which is significantly cheaper than the general market average of 2.74 times. This make W.P. Carey a cheap stock with great assets and a rising dividend. TPG Specialty Lending (TSLX)Dividend Yield: 7.5%TPG Specialty Lending (NYSE:TSLX) provides financing and capital to a variety of companies. TPG Specialty is part of the famous TPG Capital, formally called the Texas Pacific Group. Texas Pacific Group is one of the largest and more successful private equity firms in the world -- and TPG Specialty draws talent and resources from that relationship.Revenues are up on a tear with the trailing year climbing by 24.2%. Its net interest margin, which measure the difference in funding costs against interest earnings, is running at 10% and it keeps its efficiency ratio humming at a profitable 31.5% which means that it costs only 32 cents to earn each dollar of revenue.The company has generated a return of 90.7% over the trailing five years for an average annual equivalent of 13.8%.It pays regular dividends quarterly, providing a yield of 7.5%. But it also regularly pays additional dividends from ongoing profits for a current annual yield of 8.63%. * 7 Stocks to Buy In a Flat Market In addition, since it is also set up under the Investment Companies Act of 1040 and the Small Business Investment Incentives Act of 1980 -- it avoids federal income taxes -- leaving more cash to feed that dividend. The company is cheaply run with great margins and a great dividend stream, making for a good value right now. AT&T (T)Dividend Yield: 3%American Telephone & Telegraph referred to as Ma Bell, or now as AT&T (NYSE:T), is a well-known company. It offers wired and wireless communications, internet and data transmission, satellite and cable content distribution as well as streaming. And oh yes, it comes with a huge content warehouse and generator in WarnerMedia.The direct comparison is Verizon (NYSE:VZ) which is a good dividend stock. But AT&T is way, way cheaper. AT&T's stock is valued at a mere 1.5 times book which is way cheaper than Verizon's stock value of 4.4 times book.Revenue is rising with the trailing year up by 6.4%. And while the company has a lot of components, overall operating margins are running at a fat 15.3% which in turn drives a nice return on equity running at 9.5%.It has built up debt in its acquisition of Time Warner -- but it is manageable at only 33.2% of its assets.The stock has trailed Verizon until recently. Elliott Management announced that it has amassed $3.2 billion of the company's stock. Activist investor Paul Singer wants AT&T to hone its focus and sell some of its superfluous operations. And the market likes what it sees.Over the past five years, the stock has returned 46% for an average annual equivalent return of 7.9%. But for the year-to-date, the stock has returned 34.7%.The dividend is running with a yield of 5.3%. Good and rising dividends, a stock that's cheap compared to its prime rival and a shake-up potentially in the works make AT&T a good buy right now.And now that I've presented some dividend stocks on the cheap, perhaps you might like to see more of my market research and recommendations for further safer growth and bigger reliable income. Click here to learn more.Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post 5 Cheap Dividend Stocks to Buy appeared first on InvestorPlace.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of TPG Specialty Lending, Inc. New York, September 11, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of TPG Specialty Lending, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Every industry has its disruptors. The old and established leaders get comfortable doing things the same way -- it has worked for decades, so why change? Sometimes disruptors come with new ideas and approaches. Other times they have new technologies that can range from an app to a completely new means of operating.Source: Shutterstock One example that I use on a daily basis involves artificial intelligence (AI). I have a Bloomberg Terminal, which is a vital tool for pulling all sorts of data and information on any economy or market as well as any stock, bond or other security. It also comes with over 2,700 journalists around the globe that are generating news and other stories each and every day. But interestingly, Bloomberg has adopted AI which combs news releases and economic data releases. Then its army of robotic writers create an increasing percentage of its posted stories.There shouldn't be anything subjective in the robotic writing, but you never know how this will develop. By the way, I am not a robot.InvestorPlace - Stock Market News, Stock Advice & Trading Tips AI and Fintech StocksBanking is getting it worse. Financial technology (Fintech) companies continue to roll out non-bank payment, loan and deposit apps. These are increasingly making consumer banking with traditional banks less necessary, if not more costly. And even mortgages can be applied for or refinanced via apps.This has led many newer stocks to grab investor attention, including Square (NYSE:SQ) with its alternative mobile payment and point-of-sale services. It many be gathering new adopters, with revenue up over the trailing year by 49%, but it has negative operating margins running at -1.1% which in turn is delivering a loss on shareholder equity of -4.7%. * 7 Deeply Discounted Energy Stocks to Buy And dividends? Not with Square's cash burn. No wonder that in the trailing year, insiders have been reporting millions upon millions of shares sold, not bought. Bad indicator.Then there's Fiserv (NASDAQ:FISV) stock, which provides behind-the-scenes services and systems to alt-financial fintech companies. This company is a bit more responsible, with operating margins running at 30.1% which in turn is helping the return on equity to reach a current 35.6%. But its sales are anemic, with gains over the trailing year of only 2.2%.And it doesn't have much cash on hand, putting it in credit jeopardy in the short term. And the stock is valued at 16.4 times its book value which is has actually dropped by 42.6% to a current value of $6.48 per share from where it stood back in 2017.Again, no wonder that over the trailing year, that there were 20 sellers in management and the board -- again not a vote of confidence. And dividends? Not with the cash trouble and short-term credit woes. Instead, twice in the past 10 years, Fiserv has had to do two reverse 2 for 1 splits to keep the stock price up to avoid regulatory and market scrutiny. Better Alt-Financials With Better FintechFintech might be a good disrupter for beating traditional banks, but it's not so rewarding for investors -- especially without dividend income.But what is really beating banks comes from three obscure bits of Congressional legislation: The Investment Companies Act of 1940, The Small Business Investment Incentive Act of 1980 and The Cigar Excise Tax Extension Act of 1960.The Investment Companies Act established holding companies and funds, which allowed companies to own financial assets beyond just plant and equipment like operating companies. The Small Business Investment Incentives Act provided companies beyond banks to lend and own loans and other financing instruments from public and private companies, which brought needed loans to a stifled banking market. And the Cigar Excise Tax Extension Act had embedded in it the legal and tax structure which enabled real estate investment trusts (REITs). Business Development CompaniesBack in the late 1970's, inflation was out of control, driving interest rates to the moon and driving banks to be reticent about lending. So, the 1980 legislation allowed non-banks to operate as investment companies which could make loans and invest in loans. This began what is largely known as Business Development Companies (BDCs), which also do not have to pay traditional corporate income taxes.BDCs have been a very successful business model over the past many years. Banks have been strangled with low interest rates, which limit their net interest margins (NIM). This margin is the difference between what they pay in deposits against what they earn from loans. And regulations post 2007-2008 have stifled them with costly compliance. Even with relief over the past three years, much still needs to be done to unburden banks.Better than Banks: MVIS BDC Index Total Return Source MVIS & BloombergBDCs are outside much regulatory purviews and they don't do deposits. And lower interest rates enable them to fund themselves at lower rates through various non-banking means such as the bond and credit markets. And it shows in the performance of the MVIS BDC Index generating a return year to date of 21.53% including an average trailing tax-advantaged dividend yield of 9.72%.Moreover, BDCs also participate in the business loan market. And while there can be some shadows in this part of the credit market, the well-run and well-capitalized companies can participate in senior loans, which BDCs can participate in for their portfolio assets.Senior Loan Debt Index Source Palmer Square & BloombergSenior loans continue to perform well, even with some pullbacks. Such was the case with a drop in liquidity during the closing weeks of last year.In the model portfolios of my Profitable Investing, I have a great BDC in Hercules Capital (NYSE:HTGC). Hercules is based in Palo Alto, California, with offices around the nation. It focuses on working with technology companies and has a good track record of financing startups through to become bold-faced names in the tech market. It makes loans and provides other financing and also takes equity participation in its portfolio companies. It then works with them like bankers used to do by guiding them along to an exit strategy of being bought or through an IPO.Net interest margin (NIM) is ample at 8.9% and the efficiency ratio is good at 52.5% (the lower the ratio, the greater the profitability). Revenues are up 8.8% for the trailing year and it feeds a nice annual dividend stream including regular special distributions yielding 10.1%.The Profitable Investing portfolio also has Main Street Capital (NYSE:MAIN). This BDC focuses on more mundane small-to-middle-market companies with lending and other financing. It has wide financial margin and an efficiency ratio of an amazing 8.2%. and it pays an annual dividend, including regular special distributions, yielding 6.7%.Then there is my recommended TPG Specialty Lending (NYSE:TSLX). This company provides financing and capital to a variety of companies, including loan assets in its portfolio. Part of the famous TPG Capital formally called Texas Pacific Group which is one of the largest and more successful private equity firms in the world -- TPG Specialty draws great talent and resources from its affiliate.Revenues are up on a tear with the trailing year climbing by 24.2%. Its NIM is running at 10% and it keeps its efficiency ratio humming at a profitable 31.5%.TPG Specialty Lending (TSLX) Longer Term Total Return Source BloombergThe company has generated a return of 87.8% over the trailing five years for an average annual equivalent of 13.4%.It pays regular dividends quarterly, providing a yield of 7.5%. But it also regularly pays additional dividends from ongoing profits throughout the year for a current annual yield of 8.8%. Another Proven Bank DisruptorBanks used to be big in the mortgage business. That has been changing, particular post-2007-2008. Now others are in the market to originate and own mortgages. Inside my model portfolios of Profitable Investing, I have MFA Financial (NYSE:MFA) which is structured as a REIT under the Cigar Excise legislation noted above. MFA owns and runs a mortgage portfolio which in turn fuels an ample dividend yielding 11%. And it has proven itself to work during times of adversary including doing pretty well in the midst of the 2007-2008 financial crisis.Over the past 10 years, MFA has delivered a return of 213.48% for an average annual equivalent of 12.09%. Buy it in a taxable account as 20% of its dividends qualify as deductible from income tax liabilities thanks to the Tax Cuts & Jobs Act of 2017, making the payout distributions even more attractive after taxes.And now that I've presented my alternative Alt-Financials for more dividends and price gains, perhaps you might like to see more of my market research and recommendations for further safer growth and bigger reliable income. For more - look at my Profitable Investing. Click here to learn more: https://profitableinvesting.investorplace.com/Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post 4 Fintech Alternatives to Square & Fiserv with Big Dividends appeared first on InvestorPlace.
TPG (TSLX) delivered earnings and revenue surprises of 2.17% and 8.76%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
TPG (TSLX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by nearly 9 percentage points since the end of the third quarter of 2018 as investors worried over the possible ramifications of rising interest rates and escalation of the trade war with China. The hedge funds and institutional investors we track typically invest more […]
TPG Specialty Lending Inc NYSE:TSLXView full report here! Summary * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is low for TSLX with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold TSLX had net inflows of $14 million over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
TPG (TSLX) delivered earnings and revenue surprises of -8.89% and -4.34%, respectively, for the quarter ended March 2019. Do the numbers hold clues to what lies ahead for the stock?
Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to […]
TPG (TSLX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
On a per-share basis, the Fort Worth, Texas-based company said it had profit of 22 cents. Earnings, adjusted for investment costs, were 67 cents per share. The results surpassed Wall Street expectations. ...