Apollo Investment Corp. (NASDAQ:AINV)

Apollo Investment Co invests in some great companies like the Soup Plantation- a very popular restaurant in California.

yield play

sorely tempted to follow this thumb up w some Cash

yield and capital appreciation.

Private equity stock. Good dividend, don't know about putting it in the actual portfolio though.

bdc

The newly focused business model should pan out well. Shifting to a business develop company has helped encompass a more diverse offering of private market debt solutions, rather than liquid investments. Recently teamed up with Madison Capital, a middle-market loan originator totaling $250 million. This will increase their exposer to senior secured debt opportunities.

Nice pop today. Secured a billion dollar loan.

AUGUST 1st: 12,132 (Dow Jones)
AINV: $9.76

From August 1st to May 4th:

AINV lost about 26% of its value.
The DOW rose 7.4%
TCAP rose 15%
PSEC rose 15.3%
ARCC declined 2%

AINV's management claimed in the quarter ending September 30th that the LOSS experienced in the NAV was due to mark to market results and not a deterioration of credit quality. However, AINV lost 17% of its NAV in one single quarter, while the DOW lost about 8% of its value during the same period. It would appear the marks are appropriate, given the company is rapidly approaching the 1:1 leverage ratio. However, the dow recovered and actually posts a 7.4% increase since August 1st, reversing all the losses and posting that pretty 7.4% gain. Now, one might think that AINV should have net appreciation in the portfolio as market conditions improved, however, AINV's portfolio recovery has been mute. In fact, AINV hasn't experienced any recovery from the 2008 meltdown and the NAV of AINV is now just $0.04 above it's ALL TIME low of $8.12.

For the quarter ending Dec 31st, AINV's management reported in February that the company experienced the bulk of its appreciation in JANUARY and that NAV today could be near $8.40-$8.50 range for the quarter ending March 31st. That compares to the $9.76 NAV AINV had prior to the September 30th quarterly report. As you can see, a $8.45 per share NAV is not a real recovery. (Thats even if AINV reports an NAV that high.) We have a Dow Jones hitting highs while AINV has failed to perform. The credit markets have posted positive results for the previous 52 weeks. http://online.wsj.com/mdc/public/page/2_...

That is why AINV today trades at $7.10 per share, which is a 16% discount to the March 30th projected NAV of $8.45. I guess its realistic to assume that if AINV can lose 17% of its NAV because of market conditions, but fails to recover with the markets, and the markets again suffer a pullback, that AINV could very well lose another 17% of NAV and fail to recover those NAV marks as well. So really, 16% discount to NAV is a very rich valuation perhaps unless AINV can show some real turn around in how it conducts its business.

solid divdend will be maintained, will recover following europe stabylizing

there's free money right now thanks to the fed, and hopefully the economy is coming back.

Well managed and at this point a great dividend yield. I am assuming a small cut in the payout, but a cut appears to be priced intto the stock.

yo

going up

AINV looks extraordinarily cheap right now. Selling for less than 80% NAV and P/E of 6, while still sporting a 14% ROE, 8.8% ROI, and a nearly 15% dividend. RIC structure requires that they distribute 90% of earnings. The risk here is that they're inflating NAV by carrying their companies at overly high book values, but with past write-downs, this risk is lessened. They have a buyback program in place and the CFO bought a small slug of shares in August, so insider buying is favorable.

The company thinks its own stock is now cheap - buyback plan in place AND the CFO just bought open market shares. Adding more to MRLP.

Just took a hit along with everyone else this week with the credit downgrade. Solid Dividend and good management. Dividend has been steady @ 0.28 per share for a few years. Stock will bounce back

real estate

Good management that is vested in the company, reasonable valuations, cash flow, still challenging market for lending for some time that will increase quality of deals and yield on investment.