Observations and Sample of Recent Trades: GARS, GLAD, MSPRA, NBB, VRP

Economy: 

The U.S. and China called a temporary truce that will delay further U.S. tariffs while the parties make another effort over the next 90 days to resolve the trade dispute. Trump and Xi Agree Not to Impose Further Tariffs From January - Bloomberg

None of the issues that have stymied an agreement after prolonged negotiations were resolved at the meeting. 

"The Chinese agreed to an unspecified increase in their purchases of American industrial, energy and agricultural products." U.S. and China Call Truce in Trade War - The New York Times The speculation prior to the meeting was that China would lift its tariffs on U.S. agricultural products in exchange for the delay in implementing higher tariffs. That did not happen.  

If no agreement is reached in 90 days, the U.S. warned that its tariffs will increase from 10% to 25% on $200B in imports.

Trump called his meeting with President Xi Jinping “highly successful" and an "incredible deal". I would just characterize it as avoiding a worst case scenario for 3 months. It will be interesting to see how the Stock Jocks react on Monday.    

Seemingly dovish, Powell says interest rates are ‘just below’  neutral level MarketWatch (11/28/18)(“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy -- that is, neither speeding up nor slowing down growth.”)

Economy grew 3.5% in third quarter, pushes corporate profits to 6-year high, GDP shows - MarketWatch

Gross Domestic Product, Third Quarter 2018 (Second Estimate); Corporate Profits, Third Quarter 2018 (Preliminary Estimate) | U.S. Bureau of Economic Analysis (BEA)

New-home sales tick down, inventory surges as housing market outlook darkens - MarketWatch

New Residential Sales October 2018.pdf (average sales price $395K, median sales price at $309.7K) Affordability for median income households is becoming more troublesome)

Pending Home Sales Slip 2.6 Percent in October | www.nar.realtor; Pending home sales tumble to 4-year low in latest sign of a housing-market correction - MarketWatch

The truck tonnage index is primarily a coincident economic indicator. During an expansion, such as the one in place since June 2009, the dominant trend will be up until there is a prolonged period of leveling out. The leveling out period was prolonged in the 2005-2007 period and the index did not turn down until the Near Depression was underway. 

Truck Tonnage-St. Louis Fed

There has been a leveling off period that started in June 2018.

The train traffic index is expanding but the percentage gains are anemic for carloads. Rail Traffic for the Week Ending November 17, 2018 - Association of American Railroads (carloads were up 1.8% for the first 46 weeks of 2018 compared to the same period in 2017). 

Home price gains shrink to lowest level since January 2017: S&P Case-Shiller

Cyber Monday sales break record, with $7.9 billion spent online: Adobe

Amazon says it had its biggest shopping day ever on Cyber Monday

Consumer confidence hits 135.7 in November, vs. estimate of 135.9

+++++

Markets and Market Commentary: 

Last Friday, the S & P 500 bumped up against its 200 day SMA line but could not pierce it to the upside. Using a 1 year YF chart, the 200 day SMA line was at 2,761.01 with the index closing last Friday at 2,760.17. S&P 500 Chart This index closed near its daily high of 2,760.88 which also was below the 200 day line.  

Fed flags concerns over corporate debt in first-ever financial stability report - MarketWatch

Stock market’s selloff is only half-done, and final leg will come in 2019, warns Morgan Stanley strategist - MarketWatch

Cramer predicts another 4% rally before market continues bearish moves

Why the bloodletting in FAANG stocks is just getting started: Canaccord - MarketWatch

+++++++

Trump: 

On the day of Cohen's guilty plea (11/29/18), Federal agents raided the offices of a lawyer who did tax work for Trump. 

We do know that Trump's accountant and Cohen are cooperating with the FEDs. Trump Org CFO Allen Weisselberg given immunity by prosecutors to testify

Also, on that same day as Cohen's guilty plea, Deutsche Bank, the last bank willing to lend large sums to Trump, was raided in connection with a money laundering scheme. 

Deutsche Bank Frankfurt Headquarters Raided by 170 Police. Here's Why | Fortune (discusses link with VTB, a state owned Russian bank controlled by Putin, that was lined up to provide financing for Trump's Moscow project)

Trump Tower Moscow and Michael Cohen’s lies, explained - Vox; Felix Sater confirms Trump pursued deal with sanctioned Russian bank - Business Insider; Trump Tower Moscow deal: Trump has denied having business in Russia for the past two and a half years We now know that Trump was negotiating a deal during his campaign, notwithstanding his repeated denials, and Russia was starting to interfere in the U.S. election on Trump's behalf at the same time as those negotiations were taking place.  

Donald does not like the recent developments:

I suspect that all of these events are linked but only time will tell.  

It is unusual for the consigliere to go down before the Capos and the Don. 

In a few weeks, Devin Nunes and other House republicans will not be able to shield Donald any longer from a full investigation by the House Intelligence Committee. 

Donald, Russia and Ukraine: 

This latest crisis was provoked by the illegal seizure of three Ukrainian vessels attempting to enter the Sea of Azov, which is under the joint jurisdiction of Ukraine and Russia under international law. Russia-Ukraine tensions rise after Kerch Strait ship capture - BBC News; Russia Attacks Ukrainian Ships and International Law - The New York Times ("under a treaty ratified by Ukraine and Russia in 2004 ... the Azov Sea and the Kerch Strait were defined as shared territorial waters. That treaty, signed by President Vladimir Putin of Russia, is still in force.") The Ukrainian ships were seized in the Black Sea as they moved toward the Kerch Strait which is the only entrance into the Azov Sea. 

Donald's initial reaction was to say the U.S. was unhappy with both sides, a comment reminiscent of what he said about the White Supremists at Charlottesville. Tump refuses to condemn Russian aggression against Ukraine - CNN I suspect that John Bolton and others convinced him to take a perfunctory harder line thereafter.Trump cancels planned meeting with Russian President Vladimir Putin at upcoming G20 summit in Argentina 

Trump and the Mueller Investigation: 

That tweet tells us a lot about Donald.

Trump on Rod Rosenstein: ‘He should have never picked a special counsel’

Trump compares Mueller prosecutions to the McCarthy era - The Washington Post

Exclusive: Manafort held secret talks with Assange in Ecuadorian embassy (one of the visits allegedly occurred after Manafort was named Trump's campaign manager and shortly before Wikileaks released the hacked emails); Special counsel Mueller's team says Paul Manafort lied to investigators, breaking plea deal 

Manafort and Wikileaks deny the report, though neither have any credibility IMO. WikiLeaks, Manafort reps reject Guardian report alleging meeting with Assange in 2016  

At the moment, there is insufficient information to form an opinion. 

It does appear, however, that the screws are tightening in the Mueller investigation which may be the cause of Donald increasing his howling at the moon and venom spewing: 

I am expecting more information from Mueller's team when they file a detailed report with the Court documenting Manafort's alleged untruthful statements.

I will discuss the Cohen plea deal in my next post. Scuttled Trump Tower Moscow project back in limelight after Cohen guilty plea; Michael Cohen pleads guilty, says he lied about Trump's knowledge of Moscow project 

Trump and Climate Change:

Sarah: Federal climate change report 'not based on facts' Sarah studied the facts when she attended the Ouachita Bible College, majoring in political science. Possibly, Sarah learned about climate change by attending Kentucky's Creation Museum, where she saw Adam & Eve walking with the dinosaurs and observed how the climate changed as she traversed the exhibit floor, though someone may have just turned the air conditioning up which caused Sarah to observe "see, no global warming."  A. A. Gill on Kentucky's Creation Museum | Vanity Fair

Doofus Don gave a sermon on climate change that is well worth reading since his intelligence is on display:

I hope that you took notes since there will be a test later.  

Sourced from Trump Washington Post interview transcript, annotated - The Washington Post; Fact-checking President Trump’s interview with The Washington Post - The Washington Post

I would note that the recent California fires were not in forests and the impacted area now faces mudslide problems due to the clearing of vegetation by the fire. California Communities Torched in Wildfires Warned of New Dangers— Flooding and Mudslides | Time; Trump Repeatedly Errs on California Wildfires - FactCheck.org

The Baseless Claim That Climate Scientists Are ‘Driven’ by Money

+++++++

1. Small Ball Income Generation:

A. Initiated Small Ball Purchase Program in GARS-Bought 50 at $7.77 (used commission free trade):  

Quote: GARS-Garrison Capital Inc. 

Closing Price Last Friday: GARS $7.55 +$0.14 +1.89% 

GARS is another deservedly hated nano cap BDC that is externally managed. The question is whether the share price have bottomed, or are close to bottoming,  after a series of dividend slashes and long period of net asset per share declines. 

SEC Filings 

2017 Annual Report (external management fees are discussed starting at page 9; risk summary starts at page 29 and ends at page 58)

Dividend History: The BDC just cut its quarterly rate from $.28 to $.23 per share. 

This history is a major negative and would justifiably cause any rational investor to lose confidence in management's prediction of dividend sustainability. 

Dividend Yield at a Total Cost of $7.7 = 11.95%

Next Ex Dividend Date: 12/6/18

Net Asset Value Per Share History: 

Sourced 10-Q Filings 

Net asset value per share has been trending down persistently. 

9/30/18: $11.25

9/30/17: $11.74

9/30/16: $12.53

9/30/15: $14.92 

9/30/14: $15.59

9/30/13: $15.11  

IPO at $15 (March 2013): Prospectus; Proceeds at $13.95 after underwriters' discount

Discount to 9/30/18 NAV per share at $7.77 = -30.93%

Chart: Awful, Major Bear Market Trend, GARS 5 Year Chart 

Maximum Position: 100 shares + shares bought with dividends 

Current Position: 50 shares 

Purchase Restriction: Small Ball Rule

Recent Earnings Report: 

Barely earned the lowered quarterly dividend with NII and an incentive fee waiver. 

Portfolio Trends: 

Risk Ratings: 

"On October 18, 2018, the Company refinanced and upsized its collateralized loan obligation financing vehicle. As a result of the refinancing, the Company unlocked additional debt capacity of $120.0 million, reduced the weighted average effective cost of the vehicle of approximately 75 basis points as of the closing date and extended the reinvestment period to November 2022. In addition, the Company expects to recognize a non-recurring charge of approximately $2.2 million, or $0.14 per share, in the financial results of the fourth quarter of 2018."

Management claims that refinancing will save a penny or two per share every quarter over a 4 year period: Page 4: Garrison Capital (GARS) CEO Joseph Tansey on Q3 2018 Results - Earnings Call Transcript | Seeking Alpha

B. Bought 30 NBB at $19.03 and 10 at $18.76 (used commission free Trades):

Quote: NBB - Nuveen Build America Bond Fund

In this week's Barrons, there is a favorable article about Build America Bonds as providing a higher yield than investment grade corporates with less credit risk. NBB is mentioned along with two other CEFs that I have owned in the past. Taxable Municipal Bonds Offer Safety and Tempting Yields - Barron's The problem with the article is that it does not discuss interest rate risks.  

The two other Build America Bond CEFs are GBAB and BBN. 

GBAB: Guggenheim Taxable Municipal Bond Managed Duration-CEF Connect
BBN: BlackRock Taxable Muni Bond-CEF Connect

Closing Price Last Friday: NBB $18.89 +$0.12 +0.64% 

NBB is a leveraged CEF that owns taxable bonds issued under the now defunct Build America Bond program.

Sponsor's Website: NBB - Nuveen Build America Bond Fund

I discussed the 30 share purchase in a previous comment.

Current Position: 40 shares

Average Cost Per Share: $18.96

Maximum Position: 100 shares + shares bought with dividends

Purchase Restriction: Small Ball Rule

Dividend: Monthly at $.103 ($1.236 per share annually)

The November dividend was divided into two parts reflecting the merger of NBD into NBB. Nuveen Closed-End Fund Merger Complete

Nuveen Taxable Municipal Income Fund Declares Post-Merger Distribution (ex dividend for that $.0728 per share distribution was 11/28 after all purchases in this chain)

Two Nuveen Closed-End Funds Declare Pre-Merger Distributions (ex dividend for that partial monthly dividend was on 12/15/18, which was after the first 30 share purchase)

Dividend Yield at $18.96 = 6.52%

Nuveen Provides Update on Closed-End Fund Merger (NBD is merging into NBB as the surviving CEF; shareholders have approved a change that eliminated the term date which had been 6/30/20)

Dividend Reinvestment: Yes at greater than a 5% discount to NAV per share. 

Data Date of 30 Share Trade (11/13/18):
Net Asset Value Per Share: $20.75
Market Price Per Share: $19.04
Discount: -8.24$
Average Discounts:
1 YR   -4.8%
3 YR   -3.93%
5 YR   -6.01%

Data Date of 10 Share Trade (11/21/18):
Net Asset Value Per Share = $20.73
Market Price = $18.71
Discount: -9.74%

Sourced: NBB Nuveen Build America Bond- CEF Connect

Last SEC Filed Shareholder Report: Nuveen Build America Bond Fund for the period ending 6/30/18

Credit Quality: about 87% in A or better

Average Effective Duration: 10.09 years as of 10/31/18

For a bond fund with that duration, the rule of thumb is that a 1% rise in interest rates would cause about a 10% loss in value. Similarly, a 1% decline would result in a 10% rise in value. Get to know your bond fund: Duration | Vanguard 

The primary risk is interest rate risk due to the long duration. A 10% loss in value would wipe out almost two years of dividend payments.

I addressed interest rate risk first by eliminating leveraged bond funds in 2016 and 2017. I started back with small small ball purchases in GDO, a term bond fund.

The small ball purchase program is another way to deal with interest rate risk in that I am investing small sums of money periodically and only buying when the purchase is at the lowest price in the chain.

I waited to implement the small ball buying program for NBB until there were signs that the world economy was slowing which may lead to a U.S. recession next year and lower interest rates.

I may then have the option of selling my highest cost lots profitably and then wait for an opportunity to buy back sold lots at the lowest price in the chain.

Some Prior NBB Trade Links:

Item # 3 Sold 50 NBB in Roth IRA: Update For CEF Basket Strategy As Of 2/26/16 - South Gent | Seeking Alpha (profit snapshot = $62.98)-Item # 1 Bought 50 NBB at $19.51 in a Roth IRA: Update For CEF Basket Strategy As Of 10/21/15 - South Gent | Seeking Alpha; Item # 2 Sold 100 NBB at $21.25 (Roth IRA)(2/27/15 Post)(profit snapshot $101.7)-Item # 1 Roth IRA: Added 100 NBB at $20.1 (6/14/14 Post); Item # 2 Added 50 NBB at $18.55 (6/29/13 Post); Item # 1 Bought 50 NBB at $20.73-ROTH IRA (6/8/12 Post); Item # 1 Sold 100 NBB at $20.13-ROTH IRA (11/22/2011 Post); Item # 3 Sold 100 NBB at $20.07 (11/4/11 Post); Item # 1 Sold 50 NBB at $19.24 in the Regular IRA (12/3/2010 Post)- Item # 5  Bought: 50 NBB at $18.4 (11/18/2010 Post)

Other Profit Snapshots:

2010 Roth IRA 50 shares +$25.58 

2011 Roth IRA 100 Shares +$108.97 

2011 100 Shares +$49.61

2014 Roth IRA 107+ Shares + $91.33

2014 NBB 100 Shares +$40.62

Realized Gains to Date in NBB = $480.79  

I am reluctant to buy NBB in a Roth IRA now given what I would call its enhanced interest rate risk.

Investors speculate on return of crisis-era Build America infrastructure bonds under split Congress - MarketWatch

There is an unleveraged ETF that owns Build America Bonds: BAB Fund - Invesco Taxable Municipal Bond ETF Overview

C. ADDED 10 VRP at $24.15; 10 at $23.98; 10 at  $23.78 and 5 at $23.61 (commission free for Vanguard brokerage customers):

Quote: Invesco Variable Rate Preferred ETF Overview

Closing Price Last Friday: VRP $23.55 -$0.15 -0.63% 

Invesco - Product Detail

Dividends: Monthly at a variable rate

Dividend Reinvestment: Yes

Recent discussion: Item # 1.B. Added 10 VRP at $24.35 (11/14/18 Post)

Current Position: 90+

Average Cost Per Share: $24.31

Maximum Position: 100 Shares (reduced from 150). 

I will likely redirect some money into individual floating rate preferred stocks. Prior to the purchase discussed below, I had eliminated all of my U.S. equity preferred floating rate securities that were not fixed-to-floating rate securities.   

Floating rate securities have been drifting down in price along with fixed rate coupon preferred stocks. This may be due in part to tax loss selling in equity preferred stocks and net redemptions out of "preferred stock ETFs" like VRP, PGX, PFF and many others. Another issue probably concerns a lower forecast for short term rates going forward that renders floating rating securities less desirable.    

2.  Advantages and Disadvantages of Equity Preferred Floating Rate Securities:

A. Bought 50 MSPRA at $20.7 ($1 Commission at IB):

Quote Morgan Stanley Non-Cumulative Series A Preferred Stock

Security Description: MSPRA is an equity preferred stock that pays non-cumulative and qualified dividends at the greater of 4% or .7% above the 3 month Libor rate on a $25 par value. Prospectus 

At a total cost of $20.72 per share, the current yield using the minimum 4 coupon is about 4.83%. 

The dividends are qualified and non-cumulative.  

An increase in the minimum 4% coupon will occur when the 3 month LIBOR rate is over 3.3% during the applicable computation period. 3-Month London Interbank Offered Rate (LIBOR), based on U.S. Dollar | FRED | St. Louis Fed This security has been paying its minimum coupon for as long as I can remember which is one reason why I trade it so often. 

An equity preferred stock will be senior only to common stock. The prospectus does contain a standard "stopper" provision that would prevent Morgan Stanley from paying a cash dividend to the common shareholders and eliminating the MSPRA dividend. (see pages S-2 to S-3; S-14 to S-15). Once the common dividend is eliminated, there would be nothing legally that could stop MS from eliminating the MSPRA dividend until it resumed paying a cash dividend. 

As a practical matter, eliminating the common and preferred dividends to save cash would probably occur on the day MS files for bankruptcy, which may never occur. It is not a good sign for an investment bank to eliminate dividends to save cash. Customers would flee in droves.  

If MS declared bankruptcy, this security would have the same value as used toilet paper. 

Alternative to Libor Quote: The libor rates are likely to be gone by 2021 and replaced by something else. There was price fixing committed by the Masters of Disaster that placed that rate setting practice in disrepute. 

The question is what happens when there is no longer a 3 month Libor quote. The prospectus deals with that issue as follows: 

I do not know whether this alternative will work or even whether the alternative rate contemplated by this provision will produce similar results. Until I have more clarity, I will not take meaningful positions in floaters using Libor spreads. 

Long Trading History Going Back to 2009: I have a long history trading this one.  

Item # 1 Bought 100 MSPRA at $12.88 (5/26/2009 Post)-Item # 4 Sold 100 MSPRA at $21.43 (1/22/2010 Post)

Item # 2 Bought 50 MSPRA at $15.7 (5/21/2010 Post)-Item # 6 Sold MSPRA at $18.50 (7/15/2010 Post)

2010 was my best year trading this security: 

MSPRA 150 Shares +$962.87 

Item # 1 Bought 50 MSPRA at $19.57 (1/24/11 Post)

Item # 4 Sold 50 MSPRA at $21.03 in Roth IRA (3/14/2011 Post)

Item # 1 Bought 50 MSPRA at $16.6 (9/27/11 Post)  

Item # 2 Bought 50 MSPRA at $19.71 (12/20/2011 Post)

Item # 3 Added 100 MSPRA at $18.9 (3/19/ 2012 Post)

Item # 3 Sold 50 of MSPRA at $20.8 (1/22/2013 Post)

Item # 5 Sold 50 MSPRA at $22.04 (3/5/2013 Post)

Item # 5 Bought 50 MSPRA at $19.25-ROTH IRA (9/7/13 Post)

Item # 1 Sold 50 MSPRA at $20.22 and Item # 2 Sold 100 MSPRA at $20.21 (4/26/14 Post)

Item # 3 Bought Back 100 MSPRA at $20.24 (10/4/14 Post) 

Item # 2 Sold 100 MSPRA at $20.91 (3/2/15 Post) 

Item # 2 Added 50 MSPRA at $19.48: Update For Exchange Traded Bond And Equity Preferred Stock Basket Strategy As Of 10/7/15 - South Gent | Seeking Alpha

Item # 3 Sold 50 MSPRA at $20.79: Update For Exchange Traded Bond And Preferred Stock Basket As Of 7/7/16 - South Gent | Seeking Alpha

South Gent's Comment Blog # 1: Eliminated MSPRA Sold 100 at $23+ (9/17/16 comment)

2016 was probably my second best year trading this security: +496.99 (200 shares)

I have not been back until I purchased this 50 share lot.   

Trading Profits to Date (all small lots): $2,121.95 (remaining snapshots are in Advantages and Disadvantages of Equity Preferred Floating Rate Securities Post) 

Maximum Position: 100 Shares (next purchase will likely be made in the $18.5, to $19.5 range) If I average down, then I will sell the first 50 share lot at $21+. 

3. Short Term Bond/CD Ladder Basket Strategy: 

A. Bought 1 McDonalds 2.75% SU Bond Maturing on 12/9/20:

I now own 2 bonds.

FINRA Page: Bond Detail (prospectus linked)

Issuer McDonald's Corp. (MCD)
MCD Analyst Estimates
McDonald's Reports Third Quarter 2018 Results

Credit Ratings:

Bought at a Total Cost of 98.855
YTM at TC Then at 3.315%
Current Yield at TC= 2.781%

B. Bought 1 Ryder System 2.65% SU Bond Maturing on 3/2/20: 

I now own 2 bonds. 

FINRA Page: Bond Detail (prospectus linked)

Issuer: Ryder System Inc (R)
R Analyst Estimates
10-Q For the Q/E 9/30/18

Last Bond Issuance (11/18): Prospectus ($300M 3.875% SU maturing 12/1/23)

Credit Ratings: 

Bought at a Total Cost of 99.167
YTM at TC Then at 3.32%
Current Yield at TC = 2.6723%

Comparable Maturity Treasury: 
1 Bond BUY at 98.292 Ask
YTM = 2.748%
Current Yield = 1.4%

C.  Bought 1 Treasury 2.375% Coupon Maturing on 4/30/20:
YTM = 2.788%

I now own 3 bonds.  

D. Early Redemption by Issuer of GATX 2.5% SU Bond Maturing on 3/15/19: 

I own only 1 bond. This December redemption raises my total to $62K in maturing proceeds this month.  

4. Intermediate Term Bond/CD Ladder Basket Strategy:

A. Bought 1 Cintas 3.25% SU Bond Maturing on 6/1/22:

This is the first intermediate term bond purchase that I have made in several months. This bond matures only a few months outside my 3 year maximum range for short term bonds, had a current yield relatively close to the YTM, and I was able to buy just one bond at the best ask price.  

I am shifting some proceeds from maturing bonds and CDs into longer maturities.  

FINRA Page: Bond Detail (prospectus linked)

Issuer: Cintas Corp. (CTAS)
CTAS Analyst Estimates

Cintas Corporation Announces Fiscal 2019 First Quarter Results

Annual Report for the F/Y Ending on 5/31/18 (debt discussed starting at page 49)

Credit ratings:

Bought at a Total Cost of 98.788
YTM at TC then at 3.617%
Current Yield at TC = 3.2899%

B. Bought 1 U.S. Bancorp 2.95% Junior Bond Maturing on 7/15/22: 

The issuer calls this bond "senior subordinated" which sounds better than "junior" bond. The credit rating is still high quality. 

If the FDIC seized USB's operating banks, the holders of USB holding company unsecured debt would be fortunate to recover anything, irrespective of whether the debt is senior or senior subordinated. I simply work under the assumption that bank holding company unsecured debt would be worthless when and if the operating banks become bankrupt. 

Finra Page: Bonds Detail (prospectus linked)

Issuer: U.S. Bancorp (USB)
USB Analyst Estimates
USB SEC Filings
10-Q for the Q/E 9/30/18
2018 3rd Q SEC Filed Earnings Press Release

Credit Ratings:

Bought at a Total Cost of 97.902
YTM at TC Then at 3.568%
Current Yield at 3.0132%

5. Eliminations:

A. Sold 50 GLAD at $9.11+ (Used commission free trade):

Profit: +$1.38

ITEM # 1.A. Bought 50 GLAD at $9.09-Used Commission Free Trade  (6/7/18 POST)

Closing Price Last Friday: GLAD $8.52 -$0.07 -0.81% 

I sold after reviewing the report for the Q/E 9/30/18: Gladstone Capital Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended September 30, 2018

Net Asset Vale Per Share:

Q/E
3/31/18: $8.62 (last reported number prior to purchase)
6/30/18: $8.86
9/30/18: $8.32 

IMO, GLAD does not deserve a market price in excess of its net asset value per share.

GLAD is a nano cap BDC with a $256+M market cap at the $9.11 price. 

In September 2018, "we restructured our $30.0 million investment in Sunshine Media Holdings (“Sunshine”) resulting in a $28.2 million realized loss." (emphasis added) Page 46 10-K While BDC's will have investments go sour, I am not reassured about the external management's competence when one goes from $30M to $1.8M given the size of this BDC. At a minimum, it calls into question paying a significant premium to NAV per share. 

CEO David Gladstone on Q4 2018 Results - Earnings Call Transcript | Seeking Alpha

Disclaimer: I am not a financial advisor but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sell of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals and situational risks. I can only make that kind of assessment for myself and family members.