$16.35

0.15 (0.93%)

7/23/2008 4:00 PM

Apollo Investment Corp. (AINV)

CAPS Rating:

The Company is a closed-end, non-diversified management investment company which invest primarily in middle-market companies in the form of mezzanine and senior secured loans, as well as by making direct equity investments in companies.

Rating a stock in CAPS consists of three components:

Your call - Will this stock outperform or underperform the S&P 500? Successful picks are measured in terms of whether or not you were correct and by how many percentage points.

Your time frame - A guideline for other members to see whether your thinking is short or long-term. Time frame is also used to calculate the stock rating, but is not used in the scoring of your pick.

Your pitch - Here's your chance to offer more detailed thoughts, analysis, concerns, or the rationale behind your call. The pitch is optional and may be added later.

Each time you rate a stock, CAPS updates the community intelligence for the company, which may or may not change its CAPS rating. For more information, visit the Help tab at the top of the page.

You aren't currently rating AINV

Add Stock to Watchlist

What the Community Thinks

Total Members

920 Outperforms

25 Underperforms

All-Stars

284 Outperforms

6 Underperforms

Wall Street

7 Outperforms

0 Underperforms

Members bullish on AINV are also bullish on:

Members bearish on AINV are also bearish on:

Ticker Tags

Business Development Companies (18), Dividend (202), Small Cap (1922), Closed-End Fund - Debt (464)
Suggest a tag

Apollo Investment Corp. At A Glance

Current Price:	$16.35
Last Trade Time:	7/23/2008 4:00 PM
Open:	$15.80
Previous Close:	$16.20
Daily Range:	$15.80 - $16.76
52-Week Range:	$12.49 - $22.49
Volume:	1,045,305
Market Cap:	$2.30B
P/E Ratio:	8.09
Compare Our Special Broker Offers!

Stock Trends

AINV VS S&P 500 (SPY)

News & Discussion Boards

Other News Headlines for AINV

Fitch assigns Apollo Investment a "BBB" IDR rating
6/27/2008 11:49:00 AM - AP
Apollo Investment raises $382M in public offering
5/13/2008 10:33:00 AM - AP
SLM Names Martin, Puleo to Board
3/24/2008 10:18:00 AM - AP
Commercial Finance Firms' Risk Rises
3/19/2008 2:24:00 PM - AP

More Headlines...

Top Bull Pitch

Recs

15 Apollo Investment Corp. (AINV)

Avatar seadragons (89.92) Submitted: 1/07/08 5:35 PM

AINV is on sale, and is a buy.

AINV's business is to invest funds in other companies -- and its balance sheet is full of these investments, which it may "flip" if it wants but which it is also perfectly able to sit back and allow to mature. A graph on the company web site seems to indica...More

Replies: 5 | Reply | Permalink

AINV is on sale, and is a buy.

AINV's business is to invest funds in other companies -- and its balance sheet is full of these investments, which it may "flip" if it wants but which it is also perfectly able to sit back and allow to mature. A graph on the company web site seems to indicate that its investment holdings are largely debt instruments -- a result one would expect from a company focused on "mezzanine and senior secured loans".

But an interesting thing has happened to this double-digit-dividend champion. AINV's premium to net asset value has vanished, and it trades at a DISCOUNT to NAV. Shares is just issued near $20 to roll into deals are now for sale for about $16. How can that be?

In addition to the NAV premium evaporating as folks bail on good companies (the evidence for it at the moment is good, and I'll point to GS, MA, GOOG, AAPL, and ACAS as some off-the-cuff examples of selling without any apparent support in the form of changed corporate fundamentals), NAV has been hammered by peculiarity of accounting standards.

With the market for credit instruments of even big, highly-rated firms being hammered (and the meaning of their ratings being doubted), the market for little companies' debt instruments isn't exactly thriving. AINV isn't able to give a value on its balance sheet based on the present value of expected future returns (the measure by which an investment's worthiness is evaluated) assuming AINV holds it until it does what AINV expects, but instead must list the value AINV could get if it were forced at gunpoint to dump it in the present markets. Consequently, NAV is hammered in AINV even as the price premium plummets into a discount.

So AINV presently offers a double sale on investments: a valuation discount due to the credit/debt markets' recent dislocations, and a NAV discount. AINV isn't being singled out for NAV discount, either: folks running for the hills with their money have left a lowball price on the table for us.

Like the rule commands, buy when others are fearful. AINV is such a play.

For more like this, ACAS is also a suddenly-discounted company with a strong history of effective management.

Top Bear Pitch

Recs

1 Apollo Investment Corp. (AINV)

Avatar georbarb (< 20) Submitted: 8/24/07 11:55 AM

could still be tainted with credit crunch limiting future borrowing to make future buys

Replies: 0 | Reply | Permalink

CAPS Members

Show Me:

Sort by:

picks per page. CHANGE

Results 1 - 5 of 183 : 1 2 3 4 5 Next » Jump to page:

Recs 0 (AINV) RhinoStat (76.04) Submitted: 7/15/08 3:53 PM : Start Price: $13.17 AINV Score: 18.72 Check out the Dividend, this has a nice pattern, get in under $14 sell at around $18 for quick, or just sit back and collect the divident til you get back in the $20's! Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (AINV) bluedome (20.46) Submitted: 7/09/08 1:28 PM : Start Price: $13.87 AINV Score: 16.78 Recently raised money and this seems like an excellent time for them to get some great terms when money is hard to come by. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (AINV) fzpd95 (98.76) Submitted: 7/08/08 2:16 PM : Start Price: $13.52 AINV Score: 18.68 CAPS rating = 5 Dividend yield >10% Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (AINV) pagaz (< 20) Submitted: 7/01/08 12:38 PM : Start Price: $13.71 AINV Score: 17.57 AINV is on sale. Heavily hammered as all financial sector is, this company has little to do with the sub-prime mess. "Buy when others fear!" Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (AINV) austinhippie (93.15) Submitted: 6/29/08 3:56 PM : Start Price: $14.91 AINV Score: 9.44 PEY.6 Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
Results 1 - 5 of 183 : 1 2 3 4 5 Next » Jump to page:

Wall Street

Results 1 - 7 of 7

picks per page. CHANGE Expand All Pitches Collapse All Pitches

Top Pick	Member Name	Member Rating	Start Date	Call	Time Frame	Start Price	Stock Gain	S&P Gain	Score	Pitch
	TrackBBTCapMkts	96.24	10/05/07 10/05/07		NS	$19.73	-17.13%	-17.20%	+0.08
	TrackDreman	95.90	09/30/07 09/30/07		NS	$18.95	-13.74%	-15.97%	+2.23
	TrackBMOCapital	96.80	02/09/07 02/09/07		NS	$19.85	-17.65%	-11.71%	-5.95
	TrackJimCramer	81.15	12/06/06 12/06/06		3W	$19.01	-14.01%	-9.53%	-4.48
	TrackKBW	44.10	12/04/06 12/04/06		NS	$18.31	-10.70%	-8.58%	-2.11
	TrackStifel	94.11	11/07/06 11/07/06		NS	$18.48	-11.52%	-6.18%	-5.34
	TrackCalyonSec	93.86	10/18/06 10/18/06		NS	$17.76	-7.92%	-6.50%	-1.42

Results 1 - 7 of 7

Beat this Stock

Clicking "Beat this Stock!" will bring you to a company with a higher rating than the one you're currently viewing.

Even though CAPS shows only one- to five-star rankings, behind the scenes, all companies in CAPS have a distinct numerical ranking. In other words, there is a No. 1 stock in CAPS and a worst-ranked stock in CAPS. When you arrive at the top-ranked stock, clicking "Beat this Stock!" will cause the page to refresh.

That is, until there is a new No. 1 stock!

These companies do not represent formal Motley Fool recommendations. Please do your own due diligence before investing. Fool on.