The BDC Reporter disagrees with a Barron's article pointing to short term Return On Equity as an indicator of which BDCs might be worth investing in. We illustrate our point by using the case in point of Gladstone Capital (GLAD) and suggest a better way to analyze who to buy or stay away from.
We provide some color about the direction of BDC stock prices on a turbulent day, and discuss two stories of interest: Fifth Street Finance's change of heart about stock repurchases and Oxford Lane's disclosure that Taxable Income might be hurt by higher 3 Month LIBOR.Written in a hurry after the market closed.
On the day before Pennant Park Floating Rate Capital (PFLT) swallows up MCGC Capital (MCGC) forever, its price is at a two year low. We call Buying Opportunity for potential PFLT investors just before the conservatively managed BDC gets set to nearly double in size.
We take on the subject of BDC stock buybacks, touted in Barron's recently. We review the wide discrepancy between BDC managers enthusiasm for stock repurchases and reality. We end by diagnosing why the BDC sector needs a more viable and longer term solution than buybacks to its current depressed state. Plus, how we are positioned.
With half the Business Development Companies having reported earnings for the second quarter, we have a look at the direction of the sector and highlight a number of developments underway. It's just a snapshot and not a comprehensive review. We'll have a full survey once earnings season is over.
Nothing lasts forever, not even BDC Sector stock slumps. As we expected, the record series of day losses across the entire breadth of BDC-land has been followed by an equally broad-based surge upwards in the past two days. As we promised, we've been tweeting about the subject at #bdcreporter. We are writing this after Day Two of the...
We have been reporting frequently recently on the sharp drop in BDC common stocks. We wrote a major post last Thursday July 23rd, 2015 detailing the short and longer term trends. Today we update the status of the BDC market. Spoiler alert: Things are not looking good. Ironically, we believe chances for a rally are increasing. We tell why...
The BDC Sector is down nearly 20% in price terms in the past year, and the downward slide has accelerated in recent days. We review how the group and different sub-groups and individuals names hare fared since July 2014. Looking forward we remain pessimistic for prices, unless earnings season brings joyful news across the board.
We re-publish commentary made about a number of different subjects in our Daily Newsletter. We cover three different subjects related to equity raising, shareholder approvals and SBIC snubs. Don't forget to sign up for our Daily Newsletter by adding your email to the box on the right.