MCG Capital Corp (NASDAQ:MCGC)

Been watching MCGC since 2008. Was introduced to it during the financial crisis and have been watching closely over the years until recently when I took a real stake in the company. This company has history of quality lending practices, low default rate, and at its current price a rediculously amazing dividend which IS sustainable. This company has navigated the recession well and is poised to make a big move before the years end.

The high dividend makes this a great short term play, and the books, valuation, p/e, profitability, along with management make this a great long term play.

CAPS Rating of 5 on 2012-03-30
Market Capitalization above 250M
Price-to-Earnings (TTM) below 7.00
Insider Ownership of 5% above
Price-to-Book (TTM) up to 1.15
% Below 12 Month High 33.00% and above
CAPS Rating between 4 - 5 on 2011-12-30
Price-to-Sales (TTM) up to 20.00

Great dividend~!!! Companies like this will prevail in a slow economy when things pick up again because of their wise investments during this slow time.

As economy stabilizes or improves, this company will only perform better. Sign me up for awesome dividends!

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

Good management and good investment portfolio. They will see larger returns in the future as the market rebounds.

Carrying investments on the books at inflated values

this is getting to 10$ by 2012

5 STAR, Small-cap, dividend payer

c'mon. who doesn't love a steal of a deal?

4.53

ccest compte

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.

bought into this at 60 adn 70 cents with real money and took a decently sized stake. MCGC should benefit from recent covenant revisions and from mark to market accounting revisiosn. See my march blog on mark to market accounting and why I invested in BDCs for further discussion.

way overbeaten. possible takeover target.

Trying to fish the bottom. Stock is beaten down, because of cancelled dividend.

Plus:

- 3 star in CAPS

- Book Value about 10.-

Minus:

- Cancelled dividend

- Managment is not trustworthy

- Overall bad situation in financial sector

It has been more or less washed from its dirty debts and by doing so has been pounded into the ruts. I suppose the economy could go completely down but I doubt it. Walmart had a bad day and that helped push MCG Capital down further. Go to your local Walmart and see that people are still packing the place. MCG is now clean and shall do quite well in the next six to twelve months.

At 3.96 (my purchase price) and with the quarterly dividends of .27/share, not a bad return for my investment. The FUD factor seems to be waining and the economy may be on the rebound. I expect this stock to start riseing... if they don't go bankrupt fisrt. :)

Low share price offers an attractive entry point along with "adjusted" dividend payout which should boost its value as the market recovers. Questionable management strategy but overall a solid company.