Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Grommit who wrote (51780)	6/26/2013 1:58:41 PM
From: E_K_S	Read Replies (1) of 78702

Re: Prospect Capital Corporation (PSEC) Lots of insider buys on this one. According to Yahoo, these execs receive a salary and bonus. They must have it rigged so they get the cream off the top w/ their bonus. Still, that one officer Barry John continues to buy a lot of shares in addition to his generous bonus. ---------------------------------------- Are you reducing any of your REIT positions? Some of the analysts see the eventual turn in interest rates higher make the leverage REITs vulnerable to a sell off. I do not really agree as it still may be too early in the cycle to start selling now. However, the market seems to be selling this sector and I am tempted to peel off a few shares (in my more leverage REITs) so I can buy in at a lower level (10%-15% lower). The premise is that when it comes time to refinance their debt, it will cost more in cash flows to service their debt. First, I do not see rates moving up a lot higher looking out 24 months. The big gain for several of these REITs is that their recently acquired properties are worth a lot more (perhaps 20% more from their acquisition prices). I do not see these REITs lowing their payouts even w/ slightly higher interest rates. They will if tenants leave or stop paying and/or do not renew their leases but I do not see this happening like in 2008/2009. Therefore, I am selectively peeling off shares in my REITs and MLPs (those with higher than average debt), booking my 20% gains and will work on deploying this money into the same candidate stock(s) and/or others on any significant market correction. From the charts, a 10%-15% correction is possible especially if the "market heard" runs to the door. I generally do not "trade" the market but these large corrections can provide good buying opportunities and for 10%-15% of the portfolio if makes sense to play a 15% correction. That's how I view it now. EKS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next