Hercules Technology Growth Capital, Inc. (HTGC)

Dividend

another checklist34 pick

Strong horse amongst BDCs / Regulated Investment Companies. Excellent management with unique business model located in heart of Silicon Valley. While competiting BDCs lose their footing with excess leverage or bad investments, HTGC will slow and steady win the race and payout dividends, as req'd, in the process. Many of my friends have thanked me for recommending this stock and increased their positions. I've been buying through the dips since Feb 2009.

yield and tech play

This is a great Silicon Valley BDC. They do venture debt and do it well....lend at good rates of return and take warrants from growth companies which provide an equity kicker. Occasionally, they invest in venture-backed companies outright. They seem to be weathering the downturn in the economy very well.

Almost all of their debt is supported by the small business administration. Trading slightly below book value. Portfolio yield supports valuation. Dividend supported by NII.

I found this gem while playing with the screener:

CAPS Rating
4 - 5 on 2009-08-03 Active Picks
>= 100 Outperform Picks
>= 25 All-Star Picks
>= 50
Price-to-Earnings (TTM)
<= 30 % Institutional Ownership
>= 25 Current Dividend Yield %
>= 12 EPS Growth Rate (last 3 Yrs)
>= 1

DIV, EPS, Growth in REV

HTGC has about the best credit quality of any of the BDCs, a superior yield that it can't just arbitrarily cut the way a conventional company can, and I like it.

I am long HTGC in real life from lower prices, but I am still a buyer today.

If the CAPs game incorporates divi's into scores in some intelligent way, the HTGC should be a nicely winning pick over time.

High dividend yield should favorably impact stock price

Sound Stock with High Dividend

T78 & PB77 & PB2

prebuy2 but 50<<200

This business development company reports earnings on Thursday. Venture capital financing is not without it’s troubles. However, if you believe we could see a 2nd half recovery to our economy, take a look at this.

It’s investment portfolio of tech and life sciences companies was valued at $581 million at 12/31/08. Ask yourself, “have these gone up or down since the beginning of the year?”.

Now look at it’s market cap of $209 million…..yes, this is an asset play.

The dividend was paid in stock last quarter, but will probably resume in cash this quarter since they paid off their credit facility with Citigroup and Deutsche Bank. Estimating the divi at about 19% annualized.

Target price is $12.75 - It broke bearish resistance at 6.75 today.

Giving credit where it is due - this is not only the pick, but the words of Alpha.

Solid Earnings, Great Dividend, Lower Debt to Equity, High (66%) Institutional Ownership, Great operating Margin, P/E is near the Buffet perfect zone (i.e. 12), general consensus on CAPS and all etrade indicators show this is a super strong choice! Unless there is a secret second set of books that nobody's found yet I can't imagine a better choice for a balanced portfolio.

htgc is a bargain at this price. fools a buy & hold now for 3/5 years & you will be a debt free fool!!!!!!

Strong earnings and good dividend.

Adding a riskier stock to my pick portfolio. Was a "stock of the day" recommendation.

Fundamentals/Value