This business development company reports earnings on Thursday. Venture capital financing is not without it’s troubles. However, if you believe we could see a 2nd half recovery to our economy, take a look at this.
It’s investment portfolio of tech and life sciences companies was valued at $581 million at 12/31/08. Ask yourself, “have these gone up or down since the beginning of the year?”.
Now look at it’s market cap of $209 million…..yes, this is an asset play.
The dividend was paid in stock last quarter, but will probably resume in cash this quarter since they paid off their credit facility with Citigroup and Deutsche Bank. Estimating the divi at about 19% annualized.
Bought it at $6.46 this morning. I’ll update more about the company and the BDC sector in The PPT tonight
Happy Cinco de Mayo.
UPDATE: Target price is $12.75
