MCG Capital Corp (NASDAQ:MCGC)

This company lied to it's shareholders and the shareholders punished them pretty good. They had a rights offering that diluted shares, and 3 weeks after the RM was complete, they cut the dividend in half. They had a -92% drop in EPS last quarter. Had they not raised cash from their own shareholders, they would have had a -150% EPS. Way to dissapoint your supporters!!

They have an investment they are holding onto that is not making any cash. For some mysterious reason, they can't explain anything about the financial state of this investment. They say it's not accuring money, it's not costing money, blah blah blah. Something is really wrong here. Good luck!!

"You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it."

As with all my picks: A very attractive P/E, excellent EPS growth rate and high five year growth prospects.

Tough times but I think they can pull through... if nothing else it's worth a small chance bet that they can survive some credit issues.

Two factors have influenced my opinion of this stock recently. The first is that the Rights issuance by the company is about complete, I think that will reflect the "low" point of the stock. The other is that the price to book value represent a significant discount. I believe this to be a significant factor for a company of this nature. This discount at some point will evaporate, and my thought is that it will come mostly in a higher price of the stock. Word of caution, this is still a small cap stock and has inherent volatility and risk.

I read the article "Contrarian Shopping List" and I seem to be missing something. I looked at Yahoo finance for "earnings estimates' and found that the actual earnings for MCGC were 40,51,42,48 cents for $1.81 total for the last four qrts. That combined with the fact that MCGC issued an extra 2 cent div in late march would indicate that somebody at MCGC thinks they are making money. Now even if they cut their DIV in half they would be paying our close to 10% and that seems to be a good dividend.

SO WHAT AM I MISSING????????? WHY THE BEARISH TALK??

Earnings Suprise... above is good. Dividends always help too.

Don't mind me, I'm testing some strats.

A microcap suffering from guilt by association. There is nothing wrong with this stock that time won't figure out. Look at the fundamentals and the companies underlying assets to see the possibility.

it'll underperform during these financially troubling times but will jump right back up after that. But it'll continue to provide investors with dividend income throughout the year to make up for losses.

Under value.

This stock stays about the same in price and pays a heafty dividend.

not ready to move yet

Great dividend play @ 13% buying 1000 shares @ 13.15

High dividend should effectively keep lowering my buy-in price. Looks to be near the bottom of the current down-trend. Let's go for it! Might even buy some for real...

With a 11% yield, you've got to love this one!

Took an uneccessary beating. Now with that dividend, this stock is going to go up. currently yielding about .42 per share every 3 months. This return, makes it a great bargain for the price.

Stock making a double bottom - bad news already priced into the stock - 10% div

pumping all pedals, but no Mad Money word