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$14.13 0.79 (5.92%)
7/8/2008 4:00 PM

Apollo Investment Corp. (AINV)

CAPS Rating:
*****

The Company is a closed-end, non-diversified management investment company which invest primarily in middle-market companies in the form of mezzanine and senior secured loans, as well as by making direct equity investments in companies.

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Recs

5

Avatar thehiddenangle (< 20) Submitted: 3/27/07 7:14 PM : Outperform Start Price: $18.56 AINV Score: -13.35

AINV is dirt cheap right now. It'll grow through dividends and share price 30% over the next year, fetching a $2.50 dividend and a $25+ stock price easily. AINV can keep the pace of high-interest rates through variable rated bonds, yet can weather a storm through savy loans to a diversified portfolio of companies.

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Avatar thehiddenangle (< 20) Submitted: 3/28/07 1:19 PM

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I notice this seems a bit unfair on the CAPS rating because it probably ignores the huge dividend when evaluating this pick, so keep in mind that even treading water at the stock price, AINV pulls in 10% at this price.

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Avatar thehiddenangle (< 20) Submitted: 3/28/07 1:28 PM

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Let me add: this is a stock that'll do well in the face of rising interest rates because nearly 1/2 of their loans are variable. That is a compelling feature in my book. Investors do tend to get blinded by the large dividend but the important thing is that the company is growing internally even without hoarding the earnings.

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