Prospect Capital’s Valuation: Can It Improve in Fiscal 3Q16?
Prospect’s valuation gap has declined over the past one month due to a sharp pullback in stock followed by a strong performance during the December quarter.
Prospect Capital (PSEC) continues to expand through new businesses. Its advanced investment pipeline aggregates more than $300 million in potential opportunities across multiple sectors.
Prospect Capital (PSEC) is deploying higher leverage to take advantage of low interest rates. The company’s fiscal 2Q16 net debt-to-equity ratio rose marginally to 77.9% over 77.6% in fiscal 4Q15.
Prospect has made multiple investments in the real estate arena with its private REITs. They’re focused on multifamily stabilized yield acquisitions with attractive tenure financing.
Prospect Capital’s (PSEC) portfolio changes reflect the company’s shift toward marginally larger investments that yield higher returns.
In fiscal 3Q16, Prospect Capital’s (PSEC) deployments are expected to be in line with the previous quarter, with a special focus on structured and retail lending.
Prospect Capital (PSEC) is expected to report its fiscal 3Q16 earnings on Tuesday, May 10, 2016, after the Market closes. The quarter ended on March 31, 2016.
Major European indexes (DBEU) were trading on a mixed note today after the rise in crude oil prices caused a bounce-back in the index.
American International Group’s (AIG) stock has declined by more than 13% over the past six months, mainly due to weak operating performance, higher reserve developments, and declining returns on alternative investments.
American International Group (AIG) reported a pre-tax operating loss of $889 million for its Commercial Insurance business in 1Q16 as compared to a pre-tax operating income of $1.5 billion in 1Q15.
American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives for organizational simplification, operational efficiency, and business rationalization.
AIG declared a 156% rise in its quarterly dividend on a year-over-year basis to $0.32 per share, translating into an annualized dividend yield of 2.3%.
AIG’s debt-to-total-capital ratio increased marginally to 36.1% in 1Q16 compared with 29.5% in 1Q15. This was mainly due to an increase in debt and buyback of shares.
American International Group’s (AIG) consumer finance business recorded a 17% fall in pre-tax operating earnings in 1Q16.
American International Group (AIG) reported its 1Q16 earnings results on May 3, 2016. With an operating income per share of $0.65, the company missed Wall Street analysts’ income per share estimates of $1.00.
Major European markets continued to fall on May 4. They were impacted by the Eurozone composite PMI release and the United Kingdom’s construction PMI.
Major European markets were trading with a negative bias on May 3. The European markets failed to build on the slight rise in the Asian indexes in late trade.
Critical European indexes (DBEU) were mostly on a positive bias on May 2, 2016. Negative vibes from the Asian markets didn’t seem to have a market impact on the European indexes.
Jim Cramer suggests focusing on “what this market wants out of a company.” He stated that “Apple is too cheap to sell, but not cheap enough to buy more.”
Icahn views Chinese authorities as benevolent dictators. Icahn isn’t worried about Apple. He’s worried about China’s attitude toward the company.