August 26, 2016
At least one JC Penny's insider is buying stock.
I like their debt better than their stock. At $19 a share, PFH is yielding 10% annually. That gets my attention.
PFH is a Corporate
Asset Backed Corp., CABCO Trust Certificates, principal amount $25 per
trust certificate. The underlying securities are the J.C. Penney Co.
Inc. 7 5/8% debentures due 3/01/2097. The certificates are redeemable
any time at the issuer's option at $25 plus an additional redemption
premium amount based on the present value of the remaining scheduled
payments based on a certain benchmark interest rate plus 20 basis points
which appears to make the actual redemption of these securities
unlikely prior to the maturity date. The certificates pay distributions $1.90625 per annum semiannually on 3/1 & 9/1.
It can't be called for less than $25, and doesn't come due until March 2097. We could be collecting money from this one for 80 more years.
This debt was investment grade when issued in March of 1999, but is currently rated CCC (junk), so don't go crazy and buy more than you're willing to risk.
Showing posts with label Investments. Show all posts
Showing posts with label Investments. Show all posts
Friday, August 26, 2016
Thursday, June 25, 2009
Some stocks are worth owning
There are a few public companies with the potential to take advantage of the mess created in housing and on Wall Street. In particular I am looking at Business Development Companies (BDC) and Real Estate Investment Trusts (REIT).
Some of the best of these companies can be found in one CEF (closed end fund) under one symbol; FGB - First Trust/Gallatin Specialty Finance and Financial Opportunities Fund.
This fund owns stock in companies that loan money to and invest in other businesses. These include two of my favorite areas of investing; Business Development Companies (BDC) and Real Estate Investment Trusts (REIT).
To reduce taxes, these types of businesses are required to pass along the bulk of their earnings to the share holders as distributions. I have found it harder for Company Management to squander investor money when they can't keep it to themselves.
The top holding make up about 80%:
Prospect Energy Corp -
MVC Capital Inc -
Annaly Capital Management, Inc
Ares Capital Corp.
Gladstone Capital Corp.
Hatteras Financial Corp.
BlackRock Kelso Capital Corp.
Cypress Sharpridge Investments, Inc.
Medallion Financial Corp.
Hercules Technology Growth Capital, Inc
This fund is currently selling for $4.26 a share and paying over 13% yield.
It trades in fairly light volume so use limit orders if you buy it.
current chart link
Click chart to enlarge
Be aware, there are special tax considerations to contend with when you own these. You may want to consult an accountant.
Some of the best of these companies can be found in one CEF (closed end fund) under one symbol; FGB - First Trust/Gallatin Specialty Finance and Financial Opportunities Fund.
This fund owns stock in companies that loan money to and invest in other businesses. These include two of my favorite areas of investing; Business Development Companies (BDC) and Real Estate Investment Trusts (REIT).
To reduce taxes, these types of businesses are required to pass along the bulk of their earnings to the share holders as distributions. I have found it harder for Company Management to squander investor money when they can't keep it to themselves.
The top holding make up about 80%:
Prospect Energy Corp -
MVC Capital Inc -
Annaly Capital Management, Inc
Ares Capital Corp.
Gladstone Capital Corp.
Hatteras Financial Corp.
BlackRock Kelso Capital Corp.
Cypress Sharpridge Investments, Inc.
Medallion Financial Corp.
Hercules Technology Growth Capital, Inc
This fund is currently selling for $4.26 a share and paying over 13% yield.
It trades in fairly light volume so use limit orders if you buy it.
current chart link
Click chart to enlarge
Be aware, there are special tax considerations to contend with when you own these. You may want to consult an accountant.
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