MCG Capital Corp (NASDAQ:MCGC)

CAPS Rating: 3 out of 5

A financial services company providing financing and advisory services to small and medium-sized companies throughout the U.S. in the communications, information services, media and technology industry sectors.

Recs

1
Player Avatar todaysitsx (< 20) Submitted: 5/23/2008 6:42:06 PM : Underperform Start Price: $3.42 MCGC Score: +33.55

This company lied to it's shareholders and the shareholders punished them pretty good. They had a rights offering that diluted shares, and 3 weeks after the RM was complete, they cut the dividend in half. They had a -92% drop in EPS last quarter. Had they not raised cash from their own shareholders, they would have had a -150% EPS. Way to dissapoint your supporters!!
They have an investment they are holding onto that is not making any cash. For some mysterious reason, they can't explain anything about the financial state of this investment. They say it's not accuring money, it's not costing money, blah blah blah. Something is really wrong here. Good luck!!

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