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This Stable 10.1% Yielding BDC Is A Strong Buy At These Levels

Published Thu, 04 Oct 2018 07:37:08 -0400 on Seeking Alpha

I consider to BlackRock TCP Capital (TCPC) to be one of the most undervalued business development companies ("BDCs") given its history and potential dividend coverage, supported by a higher quality portfolio and management as discussed in this article.
TCPC Article Follow-Up: As mentioned in "I Recently Purchased This 10% Yielding BDC":
"I recently purchased additional shares of TCPC at a price of $14.22 before the March 2018 ex-dividend date and have already earned $0.72 per share in dividends (including $0.36 paid tomorrow). The Relative Strength Index or RSI is an indicator that I use after selecting a BDC that I would like to purchase, but waiting for a good entry point. Currently, TCPC has an RSI of 38 as shown below and in my BDC Google Sheets indicating that the stock is becoming 'oversold' or 'undervalued' as discussed below. However, it should be noted that there are currently quite a few BDCs with RSI's below 40."
The following is the chart from the previous TCPC article linked above:
After the article, TCPC's share price increased closer to $15 as shown below:

However, the stock price has fallen back to $14.25 with an RSI of 38:

What Happened? As shown above, TCPC reported Q2 2018 results on August 8, 2018, with its net asset value (“NAV”) per share declining by $0.29 per share or 1.9% (from $14.90 to $14.61) due to net unrealized losses of $20.5 million (or $0.35 per... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
GARRISON CAPITAL 6.94   0.0 -0.08 0.92 13.18
FS INVESTMENT 5.85   0.0 -0.07 0.76 13.13
THL CREDIT 6.59   0.0 -0.51 0.84 12.52
BLACKROCK KELSO CAPITAL 6.26   69.6 0.09 0.72 11.61
PENNANTPARK INVESTMENT 6.36   14.1 0.45 0.72 11.15
APOLLO INVESTMENT 16.29   16.1 1.01 1.80 11.11
KOHLBERG CAPITAL 3.75   0.0 -0.25 0.40 11.05
PROSPECT CAPITAL 6.33   10.6 0.60 0.72 10.96
CAPITALA FINANCE 9.30   0.0 -1.06 1.00 10.91
HORIZON TECHNOLOGY FINANCE 11.76   10.1 1.16 1.20 10.27
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
HERCULES TECH GROWTH CAP 12.83   9.0 1.42 1.28 9.91
FIDUS INVESTMENT 15.92   8.5 1.87 1.56 9.89
PENNANTPARK FLOATING RATE CAPITAL 11.62   29.0 0.40 1.14 9.74
ALCENTRA CAPITAL 8.41   28.0 0.30 0.72 8.90
ARES CAPITAL 17.86   9.2 1.95 1.60 8.87
SOLAR SENIOR CAPITAL 16.26   16.8 0.97 1.41 8.70
MEDLEY CAPITAL 2.50   0.0 -1.55 0.20 7.87
OAKTREE STRATEGIC INCOME 8.35   23.9 0.35 0.62 7.35
GOLUB CAPITAL BDC 17.82   14.6 1.22 1.28 7.26
GLADSTONE INVESTMENT 11.70   4.7 2.48 0.82 6.99
MAIN STREET CAPITAL 41.52   14.4 2.89 2.40 5.91

GARRISON CAPITAL - GARS
GARRISON CAPITAL - GARS  


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