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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Max Fletcher who wrote (24112)	12/26/2015 8:41:51 PM
From: Elroy	1 Recommendation Recommended By JSB Respond to of 34328

FWIW here is an abbreviated Wells Fargo take on PSEC. These guys are supposedly pros, right? This illustrates my confusion. Their reasons for not liking PSEC stocks are just plain stupid..... yet we remain sidelined given PSEC’s recent ratings downgrade and questions regarding the viability of some of their investment strategies (securitization of online loans). PSEC recently got a small ratings downgrade, but remained investment grade. Therefore, what? Don't buy PSEC at ANY price? PSEC remains investment grade. Does Well Fargo have negative views on every stock that is investment grade, but just above junk? PSEC management has acknowledged the ratings downgrade (from one of the three ratings agencies) and has said they will do what it takes to maintain investment grade. What else can they do? And they have questions about their planned spinoffs? What questions? If ALL the spinoffs fail to go through, what bad things happen? Nothing as far as I know. We're left with PSEC in its current form, with a last reported NAV of $10.17 and income and distributions of $1.00 per year. An equity research analyst on PSEC should be telling us about expected defaults going forward, and expected changes in interest income going forward. If you are NEGATIVE on PSEC, you should be expecting both those numbers to decline, because if they just sit where they are NOW, of course PSEC is a great investment. Instead this guy "has questions" about the noise.....