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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (54723)	1/5/2015 11:38:40 AM
From: Cautious_Optimist	Read Replies (2) \| Respond to of 78644

Everybody, Please consider selling your Honda's and Toyotas and buying a new gawddammed Ford (F) to resuscitate my biggest value stock position, currently in an induced portfolio coma. Even the cops are driving... Dodge Challengers. WHAT IS WRONG WITH THEM?? Cops drive FORDS. At some point the market cap and financial ratios of F are a "buy when bloods in the streets." In raw financial and market psychology terms, my pain is your gain. It is said that value investing requires patience. Will check back in in a few months and hopefully the stock will resume its rise-- if not M&A'd by a strategic tech company that wants into transportation in a big way.

To: Elroy who wrote (54723)	1/5/2015 12:03:28 PM
From: MCsweet	Read Replies (1) \| Respond to of 78644

Ok here is the PSEC analyst report excerpt Impact on looming spinout strategy. We found it interesting that management chose to cut the dividend ahead of any strategic spinoff announcement given the potential that it will now be in the penalty box for a period of time on a price-to-NAV basis. One could argue that PSEC rebounds to a higher multiple given its much improved dividend coverage from both an earnings and cash flow basis; however, shareholder concerns regarding structured products holdings and aggressive share issuance over the recent past may limit interest. Should PSEC carry out a spin-out of its CLO Equity book in attempts to ‘optimize’ its positioning into higher current-yielding assets and rejuvenating the earnings profile, it will likely need to issue equity around the event in order to maintain leverage levels to the comfort of its shareholders and lenders; or it could spin off debt, too. Recall that Prospect ended last quarter with a debt/equity ratio of 0.85, in our view approaching dangerous levels in the event of any markdowns. Thereby, they may have to spin out debt along with assets, which would likely entail new discussion with creditors and potentially higher costs. Many questions on this spinout will be left outstanding until management puts forth a proxy, but in our view, the spinout isn’t as exciting or as lucrative as was portrayed on the conference call. We’re happy to be proven wrong, but in the end and no matter what the vehicle, the same management team is operating the asset pools and this team just reduced shareholder dividends by 25% while their comp is up 30% yr/yr. MC