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August 28, 2017

We have been waiting for KCAPL to start trading and it is finally appearing on our screen today.

NOTICE:  Before buying any bond or stock, check out Core Portfolio to see CURRENT positions.

We really like buying “new issues” and getting the “low” entry level price.  And we really like buying shorter term baby bonds, especially when they offer an attractive yield.

KCAP Financial is a business development company which primarily provides loans to middle-market businesses.  We have another added level of safety as the bonds provide excellent asset coverage of 2.09: like all other business development companies, regulation requires at least 200% asset coverage of debt.

KCAP is not one of the highest quality BDCs out there and we would NOT even be looking at this Company and bond issue if it wasn’t for the fact that KCAP has recently entered into a joint venture with an outfit called Freedom 3 Opportunities which is lowering our risk in this position.  We are buying a SMALL position.

Ticker:  KCAPL.  Maturity:  September 30, 2022

QUANTUMONLINE.COM SECURITY DESCRIPTION:  KCAP Financial, Inc., 6.125% Notes due 2022, issued in $25 denominations, redeemable at the issuer’s option on or after 9/30/2019 at $25 per note plus accrued and unpaid interest, and maturing 9/30/2022. Interest distributions of 6.125% per annum ($1.53125 per annum or $0.3828125 per quarter) will be paid quarterly on 3/30, 6/30, 9/30 & 12/30 to holders of record on the record date that will be 3/15, 6/15, 9/15 & 12/15 respectively


We are waiting for delivery of the book Rogue Spooks by Dick Morris.  Getting great reviews. 

Rogue Spooks: The Intelligence War on Donald Trump


Why don’t the stupid Republicans get rid of this loser?

Senate Majority Leader Mitch McConnell (R-KY) has a 19 percent approval rating according to a new Harvard-Harris poll — the lowest of any elected U.S. official with a national profile.
McConnell’s score is worse than President Donald Trump’s or House Speaker Paul Ryan’s (R-WI), according to The Hill.

“Forty-nine percent of voters polled have a negative view of the Senate leader,” The Hill, which was given the poll results, reported.

On the other hand, President Donald Trump and Vice President Mike Pence have high approval ratings — 79 percent of Republicans have a positive view of the president, with 41 percent favorable and 55 percent unfavorable from the broader survey.

Pence polls at 44 percent positive and 42 percent negative, The Hill reported.


Here is an update on Ferrlllgas.  We purchased some of their bonds recently into the Core Portfolio.  They have additional bonds available offering 13% to maturity.  Read the article linked below as you may be interested.  HIGH RISK

This week, we look again to a company that provides essential heating to many rural households across the U.S. We first reviewed Ferrellgas (NYSE:FGP) in September 2015 and again in September 2016 and most recently in May 2017. The company’s fiscal Q3 results were recently posted and reveal a company which continues to make headway, in spite of its misgivings with Mother Nature.

Revenues increased (albeit slightly) in its latest quarter, despite the winter season being 20% warmer than normal.

While total revenues increased, expenses decreased – from 9% to 18% – over the previous year’s period.
Q3 interest coverage came in a 1.8x.

The company continues to grow through accretive acquisitions of smaller regional suppliers.


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