Violent Portfolio: Adding PSEC, 1 month update

Well, PSEC will not perform that well for the remainder of their fiscal year. 4Q earnings guidance is .30-.40/share. Nevertheless, the investment thesis remains intact for one of the best managed publicly traded private equity/mezzanine debt firms, with the cushion of rising energy prices on their side. Couple that with $40 million in cash on the books now, our dividend will still be safe.

With the recent market volatility you can lock in June 2009 strike 10 puts at $1.00 (use limit orders and someone is likely to bite), and I would be happy to do that, effectively being priced extremely close to recent insider purchases (effective buy in price is $9).

Updated portfolio - note some options (BCO) will be expiring this week. Also current portfolio is in the positive at $373 using market prices. Net investment is now $4972 and a 7.5% return on net investment. Off the $100k investment, it is a .004% return. Paltry right now, but as we add a greater # of investments we should reach a 1-3% monthly return!

When BCO options expire I will adjust it to a long position with the price of $30, and credit my cash with $320.

strategy	security	price	Units	Cost	Net
Sell Short	BCOQF	1.6	-200	1	319
Buy	PBKS	7.95	1000	5	-7955
Sell Short	MTB	48.23	-170	5	8194.1
Buy	FMCN	7	1000	5	-7005
Sell Short	SINA	27.5	-365	5	10032.5
Buy Put	FUOVA	1	1000	1	-999
Buy	JAVA	9.15	1000	5	-9155
Short Call	SUQJB	0.05	-1000	1	49
Short Put	SUQVA	0.35	-1000	1	349
Short Put	WHRFU	4	-200	1	799
Short Put	PQSRB	1	-400	1	399