What Is Going On With Prospect Capital?

It has been an interesting few days )including today) of trading action in the shares of Prospect Capital Corporation (NASDAQ: PSEC), Both Monday and Tuesday action took place on much higher than average volume and were in the same opposite direction, down. During those two down days the issue fell 12 percent, from Friday's close of $5.99 to $5.26. That mark a new all time low and closing low for the issue that came to market in July 2004 at $15,In today's session, it is attempting regain some of those losses and appears to doing so on above average volume as well. At this time, the issue is trading higher by $0.50 at $5.76.The catalyst for the two decline beat down was was a note that circulated on the Street from Wells Fargo. The note reiterated its Underperfrom due to a potential SEC query into inappropriate CLO (Collateralize Loan Obligations) marks that will likely have a negative impact on its share price.The Street appears to be not as concerned over the situation and instead our applauding its Q4 report. After the close on Tuesday, the company announced a Q4 beat of $0.03 on slightly better revenues. At this point, the earnings beat is putting some life back into the issue. After a higher open,. it retreated and found support ahead of the upper-end of Tuesday's session ($5.65), only reaching $5.69 before continuing higher. So far, the rally has come up shy shy of Friday's all important close of $5.99 (its closing price prior to the negative Wells Fargo note).