Sold a Position Today
I sold out my Prospect Capital (PSEC) position today. It's a business development company with a very high yield, but had been regularly issuing stock earlier this year. The high yield was nice, but for a stretch we were getting quarterly share offerings to go with the dividends.
I had owned the stock for about two years and between the dividend, a little trading around the position and an arb swap on the recent Patriot acquisition, I made a few bucks on it. Not one of my better investments, but far from the worst.
Between a recent history of dilution and the stock price up around book value, the recent runup looked like a good opportunity to cash out and look for greener pastures. If the stock should fall back to about $10 or below, I'd consider getting back in.
Greener pastures can be taken literally since part of the sale proceeds went to open a position in Calavo Growers.
Off to investigate cookie smells coming from the kitchen, then to wrap the wife's blue boxed gift.
Merry Christmas all!