PSEC yields 21% while trading far below NAV, Michael A. Gayed notes

PSEC yields 21% while trading far below NAV, Michael A. Gayed notes
PSEC discount deepens as yield hits 21%

Michael A. Gayed highlights that PSEC is currently paying a 21% yield while trading at a 65% discount to its net asset value (NAV). He points out that the market appears skeptical about the accuracy of PSEC's reported NAV.

According to Gayed, net investment income (NII) covers the payout by 131%, even after a 22% reduction in May.

Gayed has previously commented on company fundamentals, including APLD’s $3.0 billion in capital expenditures and $116 million in expected revenue as reported in earnings here. He has also warned that a slowdown in AI could be blamed for a potential stock market crash here. These prior observations suggest his continued focus on underlying financial data and market risk factors.

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