PennantPark Investment Corp. (PNNT)
Close-end Management Invt Comp
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WIsh I had bought this one a year ago at $3-$4 like the insiders did. But they've kept right on buying all the way up. Stock also offers a 10%+ yield.
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Investment strategy and great dividends
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Increased earnings, nice yield and more and more mutual investment coming in the next 12 months as it grows its balance sheet and increases its market capitilization.
It has gained notable upgrades and attention just over the recent last 2 weeks.
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PNNT - above average BDC. It's been mentioned before, but their management and business model give them an advantage over other BDCs. BDCs are, by nature, high risk and high reward, but this micro/small cap still has a major upside potential despite bouncing up nicely in the recent July rally. Insiders are known for buying and buying, which is definitely reassuring.
Recently upgraded too.
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By its nature, a BDC is designed to pay out 90% of profits as dividends (if they want to be tax-free); this is a company that is devoted to making money for all concerned.
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This pick will beat the S&P nicely if the CAPs game takes divi's into account somewhat intelligently.
PNNT has above average credit quality in the BDC world, a very high yield that it has to continue paying if it continues making money due to its structure.
I own PNNT in real life from somewhat lower prices and I still think its a good buy here.
BDCs may have seen a bottoming of book value last quarter, or they may see it this quarter, but one way or another a bottom for them is forthcoming (or already past).
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from checklist34
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Google the phrase Zacks Releases Four Powerful ''Buy'' Stocks, if you trust Zacks these may return at or near 26%
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Improving Professional Opinion
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If their credit lines don't dry up, they should do fine. Underwriting loans appears conservative. Losses to date are low. Trading at a discount to book. Still has cash to deploy at good spreads.
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good dividends
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This BDC is undervalued and conservatively run
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Brand new BDC started by x-AINV folks.
Assuming they can replicate the Apollo Group method this should well.
The management agreement is expensive (so ceteris paribus PNNT should underperform less costly external and internally managed BDC's).
To help speed ramp up returns the PNNT management team has some cost caps in places.

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