1Mo
"OXLC's share price decline is the result of a combination of fundamental business issues, a challenging market environment for CLOs and structural weaknesses in the business model. Continued NAV erosion, repeated dividend cuts and the need for a reverse stock split signal serious financial challenges. While the high dividend yield may seem tempting for income-oriented investors, it is based on unsustainable cash flows and carries significant risks for long-term investors."
Absolutely a falling knife for me. Sounds like a total loss, sooner or later. The actual business doesn't seem to be working in that form anymore.
Absolutely a falling knife for me. Sounds like a total loss, sooner or later. The actual business doesn't seem to be working in that form anymore.
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@Khlmysee I think the falling knife is a little too black. I'm just not going to add any more at the moment, even if the EKK is rather tempting here. Analysts are predicting a recovery to $4.x again in 2026 - pretty unanimously. The competitors are currently struggling with the same development - more or less. I think patience will be the method of choice here - and close observation of developments here - although I have a manageable number of 1800 shares, I don't think it would be a good idea to sell them at an EK of just under 4 euros. But neither would the aforementioned "FrankimHarz" with his very dedicated and documented numerical analysis. I have reduced a few other stocks, e.g. Whithorse Finance (where the effect is even more blatant) and switched to BlackRock Capital (BCAT). Pay similarly good returns. But not without risk either.
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1Mo
@ZaphodB Matthias, I understand that you see potential in OXLC, but let's be honest - that sounds a lot like confirmation bias. You're obviously only looking for the information that supports your belief and ignoring the red flags. This is a classic cognitive error where you don't want to acknowledge things that don't fit your own picture.
"If you only have a hammer, you see nails everywhere"
"If you only have a hammer, you see nails everywhere"
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•@Khlmysee Thanks for the honest assessment, I'm trying not to do exactly THAT. But one alternative would simply be to sell the existing 1800 shares at a drastic loss -- in view of analysts' opinions to the contrary, it's hard to bring oneself to do that. If they were just as negative - I think I would at least reduce drastically. Incidentally, I have already done that with Whithorse Finance. Only HERE I'm just not so sure. But I will definitely keep a very close eye on everything - and try to jump out before the real pain threshold is reached, IF necessary. To be honest, some of the information from the company's environment does give me some hope. For example, that some internal investments are now generating income that is not yet available (stupid formulation, I know) But - yes - caution is advised, no question.
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