July 7. 2016
(Update: The Southern Copper Corp. Bond that we bought only five months back has exploded in value. It may be appropriate to sell this sucker and pocket the profits, but we foresee metals continuing their upward trends. So we are still evaluating as to a possible sale. Also have a huge gain in the Newmont Mining Corporate. We also feel GGN our gold holding is a buy: it pays a good dividend.)
Over the last two weeks we have been trying to buy income positions as they go ex-dividend….and the prices pullback. But the demand for income is now so strong within the dividend seeking audience (due to the low interest rates), that buyers (many uninformed and do not know what they are doing) are driving the prices UP beyond what we want to pay.
But we keep trying. Currently on the radar is HTGZ a baby bond that is going ex-dividend next Wednesday. It should pull back to $25.20 which is a reasonable price in this environment.
———-We are placing a buy limit order at $25.20 but will pay UP to $25.30.
NOTE: You can also buy the stock HTGC if you can handle the higher risk.
Hercules Capital is a Business Development Company that invests in lower-middle market US companies.
They focus on companies operating in the fields of technology, life sciences, and sustainable and renewable technology industries. They are NOT in the oil and gas field.
The company provides financing in the form of debt investments such as senior secured debt, warrants, mezzanine and equity capital for acquisition and recapitalization, seed and early stage capital requirements.
Hercules Capital, Inc., formerly Hercules Technology Growth Capital, Inc., 7.00% Senior Notes due 2019, issued in $25 denominations, redeemable at the issuer’s option on or after 4/30/2015 at $25 per share plus accrued and unpaid interest, and maturing 4/30/2019. Interest distributions of 7.00% per annum ($1.75 per annum or $0.4375 per quarter) will be paid quarterly on 1/30, 4/30, 7/30 & 10/30 to holders of record on the record date which will be 1/15, 4/15, 7/15 & 10/15 respectively