Prospect Capital Corp (NASDAQ:PSEC)

CAPS Rating: 4 out of 5

A financial services company that lends to and invests in middle market privately-held or thinly traded public companies.

Recs

7
Player Avatar cibient (< 20) Submitted: 10/6/2011 12:11:44 AM : Outperform Start Price: $5.97 PSEC Score: -9.10

Voting with insiders - CEO, CFO, directors have been buying in past few months (and since 2009 as far as I can see). 14% yield. BDCs are hard to value and you just don't know what is real -- I read David Einhorn's book Fooling Some of the People All the Time and was amazed at the tomfoolery. But insider buying and dividend payouts are tangible things -- you just hope management is not tricking themselves into thinking everything is rosy.

Member Avatar GenYfool (< 20) Submitted: 12/8/2011 9:17:05 AM
Recs: 0

In at $8.72 per share. Their low leverage is huge, and I'm hoping they're taking advantage of their newly authorized share buy-back plan, as they are earning under 13% while paying over 13% in dividends.

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