MCG Capital Corp (NASDAQ:MCGC)
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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.
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MCG Capital has done a good job in a difficult environment in managing their risk and monetizing enough assets to maintain the liquidity they need to succeed. While some companies have leveraged excessively such that the house of cards falls, MCGC has a solid balance sheet, trading at a fraction of their book value, and as the economy strengthens, their stock price will gravitate to their book value. They are still generating cash flow and their lenders have shown confidence in them with continued renewal of their credit facilities. In these times of tough credit, this kind of confidence bodes well for an easy double of the price in a short time span, a few months or a year.