Our portfolio updates for the week ending on February 21, 2025 are as follows.
Sold PTMN To Buy AB
In case you aren’t on our email list, I want to add that we bought one stock last week that we found while creating our weekly top 10 list.
I just had to have some of AB after seeing the data. Liquid capital is always an issue, so I sold our entire PTMN position and invested all the proceeds into AB. We exit with a 5% gain over 3 months.
I’m okay with trading a “risker” BDC for a much MUCH better one. We’re losing 7% yield (PTMN yielded 16% whereas AB yields 9%), but for the peace of mind of holding a better company, I’m cool with the difference.
AB does have variable divie, that ranged from $0.71 to $0.77 per share in 2024. But again I’m cool with that because of the killa numbers yo.
We Sold Our Beloved MAIN
We had to sell MAIN in our Van Life Portfolio. I love MAIN, but apparently so does everyone else. The price to NAV ratio is now over 2-1, which means time to take profits and wait for another time to enter. We exit MAIN with an 80% return yay.
If you don’t know, NAV is the assets divided by liabilities divided by total number of shares. Ideally, the price to NAV ratio would be around 1, though many investments have an elevated ratio. 2-1 is too high, meaning MAIN is overbought, and overbought by a lot. Traditionally, MAIN is in the 1.50-1.70 to 1 range.
Bought SCM
With our MAIN proceeds, we’ve initiated a position in SCM. Another BDC that I’ve had my peepers on for some time.
Like MAIN, SCM pays a monthly divie. This company has a 10.44% yield, with 9.15 forward P/E, and 45% net profit margin. I don’t think SCM will increase in value as much as MAIN did, but I do feel it will provide similar overall returns in the long run.
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