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03-03-2022, 01:59 PM
(This post was last modified: 03-03-2022, 02:07 PM by ken-do-nim.)
I thought I'd start a thread on Oxford Lane Capital, because it has been great for me but I don't see anybody else buying it. What I do is, when I have available funds, I grab a few shares every time it dips below $7.50.
Current Yield: 11.64%, pays monthly
Last Dividend Increase: January, where it went up from $.0675 to $0.075
1 Year Performance: up 18.39%
P/E Ratio: around 2.5
Article: https://seekingalpha.com/article/4489095...e-2022-cef
Oxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.
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(03-03-2022, 01:59 PM)ken-do-nim Wrote: I thought I'd start a thread on Oxford Lane Capital, because it has been great for me but I don't see anybody else buying it. What I do is, when I have available funds, I grab a few shares every time it dips below $7.50.
Current Yield: 11.64%, pays monthly
Last Dividend Increase: January, where it went up from $.0675 to $0.075
1 Year Performance: up 18.39%
P/E Ratio: around 2.5
Article: https://seekingalpha.com/article/4489095...e-2022-cef
Oxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.
You need like a 100,000 in this one to make any money  What is .07 cents going to do with a fund that trades in a $1 trading range? And this will get hit hard when interest rates rise. Just saying.
And the stock can go up .50 cents and you have a 25% return because it's so cheap. Like I said you need to invest a lot of money here to get a gain.
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You ever consider getting into motivational speaking Guru? 
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(03-03-2022, 05:01 PM)fenders53 Wrote: You ever consider getting into motivational speaking Guru?
It's crossed my mind a time or two
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(03-03-2022, 04:21 PM)stockguru Wrote: (03-03-2022, 01:59 PM)ken-do-nim Wrote: I thought I'd start a thread on Oxford Lane Capital, because it has been great for me but I don't see anybody else buying it. What I do is, when I have available funds, I grab a few shares every time it dips below $7.50.
Current Yield: 11.64%, pays monthly
Last Dividend Increase: January, where it went up from $.0675 to $0.075
1 Year Performance: up 18.39%
P/E Ratio: around 2.5
Article: https://seekingalpha.com/article/4489095...e-2022-cef
Oxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.
You need like a 100,000 in this one to make any money What is .07 cents going to do with a fund that trades in a $1 trading range? And this will get hit hard when interest rates rise. Just saying.
And the stock can go up .50 cents and you have a 25% return because it's so cheap. Like I said you need to invest a lot of money here to get a gain.
I respectfully disagree with, well, everything you wrote.
1. It pays an impressive yield. In fact, it is my top source of dividends.
2. It has held its ground with the rate increase concerns. It is the REITs that have suffered, not this type of CEF.
3. For at least this year, I still recommend a purchase every time it dips under $7.50, and you should keep your investment principal and enjoy the dividend. Will it cross over $8/share and stay there? No clue.
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(03-03-2022, 04:21 PM)stockguru Wrote: (03-03-2022, 01:59 PM)ken-do-nim Wrote: I thought I'd start a thread on Oxford Lane Capital, because it has been great for me but I don't see anybody else buying it. What I do is, when I have available funds, I grab a few shares every time it dips below $7.50.
Current Yield: 11.64%, pays monthly
Last Dividend Increase: January, where it went up from $.0675 to $0.075
1 Year Performance: up 18.39%
P/E Ratio: around 2.5
Article: https://seekingalpha.com/article/4489095...e-2022-cef
Oxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.
You need like a 100,000 in this one to make any money What is .07 cents going to do with a fund that trades in a $1 trading range? And this will get hit hard when interest rates rise. Just saying.
And the stock can go up .50 cents and you have a 25% return because it's so cheap. Like I said you need to invest a lot of money here to get a gain.
Huh. And here I thought this was a dividend growth investing board. 
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https://seekingalpha.com/news/3809554-ox...ary-levels
....and we discussed in the past I am concerned the long-term chart indicates extreme inconsistency. You enjoyed a bounce off the Covid crash. It still looks like a yield trap. I hope you actually know what you own if it's your largest payer. I don't know enough about junk debt dealers to have an opinion, but their cashflows are very inconsistent year to year.
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03-04-2022, 09:25 AM
(This post was last modified: 03-04-2022, 09:27 AM by MrFortune.)
(03-04-2022, 07:26 AM)ken-do-nim Wrote: (03-03-2022, 04:21 PM)stockguru Wrote: (03-03-2022, 01:59 PM)ken-do-nim Wrote: I thought I'd start a thread on Oxford Lane Capital, because it has been great for me but I don't see anybody else buying it. What I do is, when I have available funds, I grab a few shares every time it dips below $7.50.
Current Yield: 11.64%, pays monthly
Last Dividend Increase: January, where it went up from $.0675 to $0.075
1 Year Performance: up 18.39%
P/E Ratio: around 2.5
Article: https://seekingalpha.com/article/4489095...e-2022-cef
Oxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.
You need like a 100,000 in this one to make any money What is .07 cents going to do with a fund that trades in a $1 trading range? And this will get hit hard when interest rates rise. Just saying.
And the stock can go up .50 cents and you have a 25% return because it's so cheap. Like I said you need to invest a lot of money here to get a gain.
I respectfully disagree with, well, everything you wrote.
1. It pays an impressive yield. In fact, it is my top source of dividends.
2. It has held its ground with the rate increase concerns. It is the REITs that have suffered, not this type of CEF.
3. For at least this year, I still recommend a purchase every time it dips under $7.50, and you should keep your investment principal and enjoy the dividend. Will it cross over $8/share and stay there? No clue.
This is a yield trap. Lets face it
So lets just say you buy 100 shares at $7.50. You get paid out $28 a year in dividends. In 10 years you would be looking at $280 profit.
But if the stock dips to say $5.50 which it can with that yield your basically coming out even in the end.
To me this one isn't worth the time. Would much rather put in a monthly fund that pays over .15 or more each month. There's way better investments out there. I don't understand why you go for these big yield traps all the time
Your looking at yield here and that's not the way to look at this particular investment. Its a cheap stock that pays .07. That's it
And Fenders link explains it all
What else you got Ken lol
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High yielders are part of my game, but only half the time. There are a few (very few) with a 20year track record. They pay usually 6-8%, not 10%+. They have a hard dip when the macro looks rough, and they always survive because they don't manage with complete reckless abandon. I buy them when they crash and ride them up for 20-50% capital gain and collect the dividend. I don't like selling them when yield is still good but I know when risk/reward is out of balance. Ken bought RQI and ARCC on my advice and that is what I speak of. I am out. JSP is my last boring one I sold in JAN. A preferred fund with a normal 6% yield I didn't want to give up. Sold it in JAN and it promptly dipped 10% in SP. That is a 20 months of dividends I didn't give back. I'll likely be back in all of these after rate hikes run them lower which is HIGHLY likely.
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This company only has 68 million in cash and 315 million in debt. There is no way they can continue to pay out with that yield.
They had a negative operating cash flow of -182 million
Did you look at the financials before you bought or did you just say "Looks good at a yield of 11.5% 
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