Friday, 15 September 2017

131. Individual performance: PSEC

Taking a closer look as to why the share price of Prospect Capital went Diligently, Dynamically and Determined. through the floor. Also, there are some disturbing rumours about dividends here and there. PSEC under the microscope.
NASDAQ:PSEC. a financial services company investing primarily in middle market and privately held companies. With a global economy still covered in confetti (we’re not doing too bad right?) an investing company should be doing quite well in my opinion. Then why is it that the share price slipped and dividends were squeezed? I’ ve been keeping a portion of PSEC in my portfolio ever since the start of 2014.
Whilst paying out a monthly sum, just after January 2015, the company’s dividend faucet was shut by almost 25 % at once. Fast forward to somewhere in the middle of this post, another cut is carved in again.
Back in 2014, the purchasing price for a single PSEC ticket was 11.20USD today it is listed just above its 52wk low with 6.78 USD. This surely did not happen overnight, but still a kick in the kisser. Looking at the all-time share price, the current price tag is awfully close to the all time low of January 2016 when shares traded around 5.9-6USD.


Just found out that the PSEC dividend schedule prepares us for another cut. Monthly payment remains intact for now, but gross per share of 0.08333 USD to 0.06 USD per share makes me as jolly as a dead clown.


The graph will soon show another drop, arriving at an(other) all time low since start of monthly payments. Nevertheless, in the meantime did this company provide me with a stable income that has totalled (since counting) up to just shy of 680 USD. Good for a third place in cumulative dividend in my portfolio today.


Recent relevant news updates from well known investor information sources:


Seeking Alpha, September 12th 2017 giving a broad background on operations;
Ledger Gazette, September 15th 2017: hinting a “hold” on this share;
Oxford business daily, September 14th 2017: giving some more background on a reduced volatility of this share.


What does work reassuring is that the CFO apparently booked in another 336.5K USD worth of PSEC.  Sounds like a solid figure, but according to the same article, the company’s board owns “only” 6.6% of share (Ok, of 2.42Billion market capitalization. Touché).


Being an emotional investor as I am, this may just be an opportunity to purchase some more PSEC for peanuts. Now, where is my crystal ball…?


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Thanks for stopping by and have a great day!



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