Solar Capital (NASDAQ:SLRC)

CAPS Rating: 4 out of 5

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Player Avatar colddrink73 (98.12) Submitted: 3/26/2010 7:13:03 PM : Underperform Start Price: $16.88 SLRC Score: -14.31

Do not be fooled this company has nothing to do with solar power. It is an investment company. I hate to short but this looks to me like they dont know what they are doing. I made almost 100% return in the last 2 quarters in 2009. The market went up like 60%. The results they have genarated just don't seem very impressive to me. This is pure speculation to me. NOT a real money play.

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Member Avatar ROEoutshinesGOLD (98.81) Submitted: 4/8/2010 9:28:31 PM
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Have you looked at their prospectus?

I'm curious because the price I bought this at was very attractive.

I'm only asking because I'm not perfect and may have overlooked some things.

Give me some more information, if you would please, so that I may see your reasons for calling this one an under-performer.

You strike me as knowledgeable person, judging by your score, at least.

I bought this for my personal portfolio when it was in the low $20's and would like to find a good reason to sell it.
I really appreciate any input from you, even if you just tell me that I'm a fool.

Member Avatar colddrink73 (98.12) Submitted: 4/10/2010 11:08:38 AM
Recs: 1

If you made you purchase before March 18th you may be in good shape. I would not sell yet if I had purchased at $20. You are looking at a 12% dividend per year if the dividend rate does not decrese. They are an investment company so basicly they are going to make investments, take profits to pay wages and ovehead and profits for the company. Then they distribute the rest of the profits in the dividend to share holders. Very few companys are able to do this and still stay ahead of the market for an extended period of time. I have no information on who is leading this group or their past performance. If could be no one or it could be the next Berkshire Hathaway. I just don't like the way they make this look like it is a Solar Power company unless you look closely. Your entry price may make this a nice play for you real world because of the BIG FAT DIVIDEND. I just don't trust start ups in this field. I would want to see how thay had done over a couple of years. If you like Mutual funds I would reccomend NEEGX or ARTKX one of these 2 will be my next real money play. I like to have 1/2 my portfolio in stocks and 1/2 in mutual funds.
Good luck.
By the way you are a FOOL but so am I. Its a compliment!!!

Here is some info you may find helpful

Dividends

On January 26, 2010, the board of directors of Solar Capital Ltd. declared a quarterly dividend of $0.60 per share, prorated for the number of days remaining in the first quarter after our initial public offering. The annualized dividend of $2.40 per share equates to a 13% yield. Our first quarterly dividend will be $0.34 per share, on a pro-rated basis, and will be payable on April 1, 2010 to holders of record as of March 18, 2010.

Recent Developments

Initial Public Offering and Private Placement

On February 9, 2010, Solar Capital Ltd. priced its initial public offering at $18.50 per share, selling 5,000,000 shares through the IPO and an additional 600,000 shares through a concurrent private placement to management. Additionally, on March 2, 2010, the Company's underwriters exercised their over-allotment option and purchased 680,945 additional shares. A total of approximately $109 million was raised through the IPO and over-allotment sale (net of underwriting fees), and the private placement.

Member Avatar TomFoolNC (29.54) Submitted: 5/18/2010 10:49:10 AM
Recs: 1

Seth Klarman of Baupost is a backer of this company and has been buying shares. That gives it credibility in my book.

Member Avatar ROEoutshinesGOLD (98.81) Submitted: 8/17/2011 8:27:45 PM
Recs: 0

@colddrink

Thank you for your efforts in helping me see that "This is pure speculation... NOT a real money play."

I truly wish there were more people like you on this site. I need to find 10 more like you!

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