| | | JMO that you read too much into their guidance. It's a lumpy business. Get a bunch of loan payoffs and the
fees involved make a quarter look good. Then next quarter maybe it doesn't happen. One reason I believe
they have wider guidance numbers. They haven't really changed guidance from last quarter, just raised the low and dropped the high each a penny.
You also never know when they will cash in equity:
"In many of our portfolio companies, we hold equity positions, ranging from minority interests to majority stakes, which we expect over time to contribute to our investment returns."
I'd rather they aim low.
From their previous conference call:
"Our net investment income, or NII, in the June 2013 quarter was $92.1 million, or $0.38 per weighted average share, exceeding our prior guidance of $0.31 to $0.35. Net investment income for the quarter increased 43% year over year.
$0.38 of net investment income per share for the quarter exceeded $0.33 of paid dividends by $0.05, or 15%.
We estimate our net investment income per weighted average share in the current September quarter will be $0.30 to $0.36."
So they did .32. Missed mid guidance by a penny.
"During the period from July 1, 2013 to September 30, 2013, we sold approximately 21.3 million shares of our common stock at an average price of $11.18 per share, and raised $238.0 million of gross proceeds, with all issuance at prices above net asset value per share."
"During the period from October 1, 2013 to November 4, 2013, we sold approximately 12.7 million shares of our common stock at an average price of $11.21 per share, and raised $141.8 million of gross proceeds, with all issuance at prices above net asset value per share."
"We currently have no borrowings under our Facility. Assuming sufficient assets are pledged to the Facility and that we are in compliance with all Facility terms, and taking into account our cash balances on hand, we have over $869 million of new investment capacity."
$869 million minus the $588 million of revolver they haven't touched. They are setting on the best part of $300 million in cash.
Cash hurts in this business, and I'm guessing that is why guidance was a little lower. We are almost halfway through this quarter, and maybe it takes another.
"During the September 2013 quarter, we completed 18 new and follow-on investments aggregating $556.8 million, sold two investments, and received repayment on seven other investments. Our repayments in the September 2013 quarter were $164.2 million, resulting in investments net of repayments of $392.7 million."
$392.7 million in investments, but then add in $238 million in stock sold in the quarter. They need to get the money out of the pipeline, and have raised another $141 million already this quarter. Payoffs versus investments that they show so far this quarter is showing $15 million net on the repayment side.
Actually I am surprised it went over $11. Since the 1st of October the company sold shares amount to four trading days vol.
I'm not saying the price won't retreat, I'm saying I am in for the dividend and I don't see a problem. |
|
