been an owner of this stock since nove 2008.
have bought cheaply, and holdn strong.
but fourth quarter is not going to be as positive as that.
article below from cnbc.com
little worrisome...................
KKR Financial to record 4Q charges, loss possible
By: The Associated Press | 11 Jan 2010 | 06:26 PM ET
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SAN FRANCISCO - KKR Financial Holdings LLC said on Monday it expects to record fourth-quarter charges totaling as much as $80 million to reflect deterioration in its portfolios of mortgage-backed securities and corporate loans.
Including those charges, the investment firm expects its fourth-quarter results to range from a loss of 5 cents per share to a profit of a penny per share. In the same quarter a year earlier, KKR Financial posted a profit of 42 cents per share.
On average, analysts polled by Thomson Reuters expect KKR to report profit of 27 cents per share. Analysts typically exclude special charges from their estimates.
The biggest charge involves KKR's portfolio of residential mortgage-backed securities, investments consisting of mortgages pooled together. Values of such securities have fallen sharply amid the housing slump and economic recession.
KKR, which is operated by private equity fund Kohlberg Kravis Roberts & Co., said it expects to record a non-cash charge of $60 million to $65 million stemming from its residential mortgage-backed securities.
The remaining fair market value of those securities stood at $120 million to $125 million as of Dec. 31, down from $192.2 million as of Sept. 30, KKR said.
The company also expects to record a non-cash charge of $10 million to $15 million from its reclassification of certain corporate loan investments. The investments are being classified as "held for sale," rather than "held for investment." The charge reflects the difference between the cost and the estimated fair value of the loans reclassified as held for sale.
The loans primarily consist of loans held in collateralized loan obligations, debt securities backed by pools of commercial loans.
KKR did not say when it plans to release its full fourth-quarter report.
Separately, KKR on Monday announced plans for a debt offering. KKR intends to offer $125 million in convertible senior notes due in 2017 in an underwritten registered public offering. The notes will bear interest at a fixed rate and be convertible into cash, or into the company's common shares, or a combination of the two.
Details of the interest rate and other terms will be determined through negotiations between KKR and the underwriters.
KKR said it intends to use net proceeds to repurchase or repay a portion of its existing senior debt, with the remaining proceeds to be used for general corporate purposes.
Citi, BofA Merrill Lynch and JPMorgan are acting as joint book-runners for the offering, with KKR Capital Markets LLC acting as a co-manager.
KKR shares lost 68 cents, or 10.2 percent, to $6 in aftermarket activity. They earlier slipped 7 cents to end the regular trading session at $6.68.
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