Sold Completely Out Of PSEC – 7% Loss (Update)

I completely sold out of Prospect Capital Corporation in a rather gay four day about-face. This four days resulted in a 7% loss on the position which, thankfully, only resulted in a .35% loss to my book.

PSEC is a remarkably cheap, very interesting possible play that I would like to remain only a possible play.

In the future, I may – and in fact most likely will – revisit this position. But the more and more I think about it, the more I do not want a leveraged financial play that has recently expanded leverage by about 40% and openly admits to yield hunting… anywhere near my book right now.

Fall is coming, you fools. And the dreaded seven year mark is upon us.

Beware the number 7.

Update: I also trimmed 15% off of my HCLP position, which is up 188% over the past year. Just a little F-U money in case a buying opportunity should present itself.

I followed that with “hedge trimming” sales of everything else.

Cash stands at 35%

The Melt Up Is Upon Us

There is no limit to the benevolence of my portfolio today. HCLP spurred out the gate and is now closing in on $70, +5.4% in the first half of today’s trading.

CCJ and BAS are second runners up. Most everything else is green, with only new half position PSEC and NRP breaking the pattern at the moment.

No one wants to hold short into the Labor Day weekend. Bears have been conditioned over the past five years that long weekends deal death to misers.

My account is up +2.3% today. I’m tempted to take a few sales at lunch, just to prepare for September (the biggest dick of all the months).

The world is my tainted oyster (which is only an odd statement if you knew that I don’t like oysters). Now, as you were.

ETP Receives Vote of Supreme Confidence

Energy Transfer Partners has an outstanding offer of merger/acquisition with Susser Holdings Corporation. The good shareholders of Susser were each given voting opportunity to elect their method of being bought out. They could receive a) an all cash offer, b) a mixture of cash and ETP shares, or c) all ETP shares. The results were published yesterday upon closure of the window.

85% of all outstanding shareholders said “give me the ETP stock”.

That’s not even a contest. Only 1% of Susser’s shareholders took the cash buyout offer. 7% took the mixed bag. How’s that for a vote of confidence?

Obviously I had hoped more would get bought out – because I expect good things here. But still, I can’t blame them for refusing to leave.

New Position PSEC Takes A Day One Nosebleed

This is actually more typical than you would think; I announce a new position, it gets walloped in the public square. We all have a good laugh…except for a few of you pricks, you have a little more than a good laugh.

But you’re never around when I’m up huge, I noticed.

I had thought there was a chance that PSEC would see earnings per share surprise – they have vastly increased investment activity. Admittedly all but ~6% of that was financed from at-the-market share offerings, but I had hoped there would be a pass through. Instead, it dropped and so 4% down day.

Thankfully, it was, as I said, only half a position, so the effect is muted (by definition, I consider a full position in a stock no less than 10% of my assets).

On the one hand, it is cheap. And the payout seems, at the moment, well secured. Growth prospects are debatable. It has grown immensely, but then that hasn’t really helped shareholders out lately. It’s a complex quagmire of financial legalese (which is the very worst kind there is). But is there even a major tradeoff at these prices?

I’ll see what happens tomorrow. There are parts of PSEC that I am very much not in love with (and actively hate). So it may prove to be a short lived detour on the road of life…

New Half Sized Position: PSEC

I took a half sized position in Prospect Capital Corporation today for $10.97.

I am going to tell you this once and only once (actually, at least ten more times from now).

This is black magic calculus. If you are honed in the dark arts and know how to keep from losing your vitals, you may do what you like. However, if you do not immediately know what this company is doing (and I use this very sparingly, as in reality they are so deep in financial muck no one truly understands what they are doing, likely not even them…) then you would have to be some kind of jackass to just mindlessly follow this trade.

I like the company for their extreme growth and absurd cheapness, but the market does not trust them with a multiple for a reason – this company is everything people learned to hate in 2009. Also, the immediate issue of interest rates rising (near term catalyst) will create headwinds for them. There were also recent bouts with the SEC and a boat load of lawsuits from shareholder groups.

I am simply assuming that the companies employees are living beings that will adapt to these problems. And that they can continue growing at the rate they have been for a little while longer, while managing to pay me more than 12% annually.

This may not work out, but I’m up enough this year to gamble a little more.

Don’t be stupid.

CCJ Took A Downgrade

I was blasted today when one of my largest positions, CCJ, took a downgrade from Cowen. Why a firm pegging a position to “market perform” when they had it set at “outperform” (it never did) has the power to drop a stock 5% in a session…I have no idea.

Of course the biggest reason to fret about CCJ right now is their ongoing bloodsport with the Canadian tax man. But I’m not really catching wind of anything other than Seaking Alpha hit pieces to suggest the stakes have changed.

Maybe someone just felt like liquidating, eh?

My entire portfolio took a smacking today, and I am afraid we may very well be in the early stages of a correction. We feel top heavy.

Sold Completely Out Of PSEC – 7% Loss (Update)

I completely sold out of Prospect Capital Corporation in a rather gay four day about-face. This four days resulted in a 7% loss on the position which, thankfully, only resulted in a .35% loss to my book.

PSEC is a remarkably cheap, very interesting possible play that I would like to remain only a possible play.

In the future, I may – and in fact most likely will – revisit this position. But the more and more I think about it, the more I do not want a leveraged financial play that has recently expanded leverage by about 40% and openly admits to yield hunting… anywhere near my book right now.

Fall is coming, you fools. And the dreaded seven year mark is upon us.

Beware the number 7.

Update: I also trimmed 15% off of my HCLP position, which is up 188% over the past year. Just a little F-U money in case a buying opportunity should present itself.

I followed that with “hedge trimming” sales of everything else.

Cash stands at 35%

The Melt Up Is Upon Us

There is no limit to the benevolence of my portfolio today. HCLP spurred out the gate and is now closing in on $70, +5.4% in the first half of today’s trading.

CCJ and BAS are second runners up. Most everything else is green, with only new half position PSEC and NRP breaking the pattern at the moment.

No one wants to hold short into the Labor Day weekend. Bears have been conditioned over the past five years that long weekends deal death to misers.

My account is up +2.3% today. I’m tempted to take a few sales at lunch, just to prepare for September (the biggest dick of all the months).

The world is my tainted oyster (which is only an odd statement if you knew that I don’t like oysters). Now, as you were.

ETP Receives Vote of Supreme Confidence

Energy Transfer Partners has an outstanding offer of merger/acquisition with Susser Holdings Corporation. The good shareholders of Susser were each given voting opportunity to elect their method of being bought out. They could receive a) an all cash offer, b) a mixture of cash and ETP shares, or c) all ETP shares. The results were published yesterday upon closure of the window.

85% of all outstanding shareholders said “give me the ETP stock”.

That’s not even a contest. Only 1% of Susser’s shareholders took the cash buyout offer. 7% took the mixed bag. How’s that for a vote of confidence?

Obviously I had hoped more would get bought out – because I expect good things here. But still, I can’t blame them for refusing to leave.

New Position PSEC Takes A Day One Nosebleed

This is actually more typical than you would think; I announce a new position, it gets walloped in the public square. We all have a good laugh…except for a few of you pricks, you have a little more than a good laugh.

But you’re never around when I’m up huge, I noticed.

I had thought there was a chance that PSEC would see earnings per share surprise – they have vastly increased investment activity. Admittedly all but ~6% of that was financed from at-the-market share offerings, but I had hoped there would be a pass through. Instead, it dropped and so 4% down day.

Thankfully, it was, as I said, only half a position, so the effect is muted (by definition, I consider a full position in a stock no less than 10% of my assets).

On the one hand, it is cheap. And the payout seems, at the moment, well secured. Growth prospects are debatable. It has grown immensely, but then that hasn’t really helped shareholders out lately. It’s a complex quagmire of financial legalese (which is the very worst kind there is). But is there even a major tradeoff at these prices?

I’ll see what happens tomorrow. There are parts of PSEC that I am very much not in love with (and actively hate). So it may prove to be a short lived detour on the road of life…

New Half Sized Position: PSEC

I took a half sized position in Prospect Capital Corporation today for $10.97.

I am going to tell you this once and only once (actually, at least ten more times from now).

This is black magic calculus. If you are honed in the dark arts and know how to keep from losing your vitals, you may do what you like. However, if you do not immediately know what this company is doing (and I use this very sparingly, as in reality they are so deep in financial muck no one truly understands what they are doing, likely not even them…) then you would have to be some kind of jackass to just mindlessly follow this trade.

I like the company for their extreme growth and absurd cheapness, but the market does not trust them with a multiple for a reason – this company is everything people learned to hate in 2009. Also, the immediate issue of interest rates rising (near term catalyst) will create headwinds for them. There were also recent bouts with the SEC and a boat load of lawsuits from shareholder groups.

I am simply assuming that the companies employees are living beings that will adapt to these problems. And that they can continue growing at the rate they have been for a little while longer, while managing to pay me more than 12% annually.

This may not work out, but I’m up enough this year to gamble a little more.

Don’t be stupid.

CCJ Took A Downgrade

I was blasted today when one of my largest positions, CCJ, took a downgrade from Cowen. Why a firm pegging a position to “market perform” when they had it set at “outperform” (it never did) has the power to drop a stock 5% in a session…I have no idea.

Of course the biggest reason to fret about CCJ right now is their ongoing bloodsport with the Canadian tax man. But I’m not really catching wind of anything other than Seaking Alpha hit pieces to suggest the stakes have changed.

Maybe someone just felt like liquidating, eh?

My entire portfolio took a smacking today, and I am afraid we may very well be in the early stages of a correction. We feel top heavy.

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