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What is a BDC? [from Jonathan Hoenig, SmartMoney 11-27] BDC regulation was created by Congress in 1980 to stimulate the flow of public capital to private businesses. Unlike traditional private-equity funds, these firms operate like standard public companies. They file regular reports with the SEC and are regulated by the Investment Company Act of 1940. The appeal for individual investors is the liquidity of a public stock but the exposure of private equity. The vast majority of BDCs invest across a diverse portfolio of businesses. Essentially, you are investing in a closed end mutual fund, although instead of holding individual stocks, BDCs hold debt and equity of private companies. Because it's more difficult to directly value the firm's holdings, investors must place even more emphasis on management and strategy. What is a BDC? [a longer answer] [from Alicia S. Totman, BDC Journal Dec 2005] BDCs are managed portfolio companies that make investments in private or thinly traded public companies in the form of long-term debt or equity capital. The goal of the BDC is to encourage growth and success of individual businesses through providing them a public equity vehicle. BDCs issue pooled shares to the public, which are bought and sold on security exchanges creating a publicly traded, private equity fund. Historically, mezzanine investing and private equity investments were only available to large institutional investors and high net-worth individuals or 'accredited investors'. Accredited investors must have a net worth of one million U.S. dollars or have made at least $200,000 each year for the last two years. BDCs' shares are traded publicly, thus, smaller net-worth individuals are provided the opportunity to enjoy the liquidity of a publicly traded stock while gaining generous yields, offered by early-stage investments in the private equity industry. BDCs are designed to either control or offer significant managerial assistance to its portfolio companies. The SEC does not define 'significant managerial assistance' but it generally is considered editing business plans, recruiting executive management, sitting on the Board of Directors and participating in strategic decisions. One of the advantages a company receives under the wing of a BDC is the speed in which they are able to raise funds. In comparison, private equity managers typically travel extensively, negotiating with and soliciting potential investors, raising funds over a period of 6 to 12 months. BDCs generally raise funds in 90 days, due mostly to the fact that they are able to tap into a previously unavailable source of funding. Eligible portfolio companies are limited to domestic companies with market capitalizations of $250 million or less. BDCs are restricted from including banks, broker dealers, insurance companies and other BDCs in its portfolio. A BDC can choose to be taxed as a C corporation or a Regulated Investment Company (RIC) and there are additional requirements [and benefits] for being a RIC. Today, there are approximately 30 firms that file as BDCs. The slow development, or rather absence, of a BDC industry could be explained by the ambiguity of rules and regulations in the operation of a BDC set forth by the SEC. Special Tax Treatment for the BDC/RIC [From the ACAS web site] To qualify as a Regulated Investment Company, a company must annually distribute to their stockholders at least 90% of their investment company taxable income, which includes their taxable ordinary income and short-term capital gains of our investment company. BDCs are not subject to federal income tax on the portion of their investment company taxable income that is distributed to our shareholders. BDCs can retain and pay taxes on our net long-term capital gains. Big Potential Differences in Taxes for You [From the ACAS web site] Since ACAS's IPO, all of their dividends declared through March 31, 2006 have been or are anticipated to be distributions of ordinary income for tax purposes. Of ACAS's 2005 dividends of $3.08 per share, $3.0682 were non-qualifying dividends and $0.0118 were qualified dividends. Qualified dividend income is taxed to stockholders at the rates that apply to net capital gains. [From the ALD web site] Allied Capital generates income from two primary sources: ordinary income from the interest and fees that they earn on their investments and net long-term capital gains that they realize throughout the year. Therefore, a portion of ALD's dividend is usually taxable to our shareholders at their ordinary income rates and a portion typically qualifies for the long-term capital gains rates. In 2004 and 2005, half of ALD's dividends qualified for the long-term tax rate. What's Up with the Dividend/EPS Ratio? [From the ACAS web site] As long as most BDCs charge Payment-in-Kind interest on loans and accept warrants from their portfolio companies leading to the accretion of Original Issue Discount, Operating Cash Flow would not be expected to cover the dividend, because the accrual of PIK Interest into principal and accretion of OID into discounted notes are reductions of earnings to arrive at Net Cash Provided by Operating Activities (Operating Cash Flow). Under GAAP, the cash collection of these amounts are realized in the form of principal repayments and is reflected in the Investing Activities section of the Consolidated Statements of Cash Flows in lines cash Collection of Payment-in-Kind Notes, Collection of Payment-in-Kind Dividends and cash Collection of Accreted Loan Discounts. Let's Talk About Risk [From Jonathan Clements, WSJ 4-06-05] Investing in BDCs can be even riskier than investing in commodities and hedge funds. For proof, check out [1] MVC Capital went public in March 2000 at $20 a share. Its shares plunged, hitting $7.25 in late 2002. The following year, the fund adopted a more flexible investment strategy and new management took over. Results have since improved, helping to nudge the shares back up to $9.40. (On 12-08-06 MVC closed at $13.47 - and MVC, which began its post-IPO life paying a dividend, suspended paying that dividend in 2002 and did not reinstate that dividend till October of 2004) [2] Allied Capital is probably the best known BDC, and it has a fine track record. But for the past three years, it has been under assault from short sellers, who claim Allied is overvaluing its assets. The SEC have also made inquiries that apparently relate to Allied's portfolio valuation. [3] In 2004, Wall Street expected a slew of new BDCs to be launched. But investors balked at the hefty underwriting and management fees involved and only a handful of deals got done, including offerings for Apollo Investment, Ares Capital, NGP Capital Resources and Prospect Energy. [From Factoids] Pointing out the performance of one atypical BDC is NOT the way to address the issue of risk. What concerns me is the prospect of falling NAVs. But even that is atypical. And there is the risk of hyper-interest rate sensitivity that is a concern for all loans with higher than average spreads tothe risk free ten year - but I do not have data on that. So let me end the topic of 'risk' by saying this intro does not cover that topic well. Loan Risk From the 2004 American Capital Strategies Annual Report: We believe many investors have not focused on our favorable risk adjusted returns. While we experienced the losses noted above, we nevertheless compared quite favorably to the banking industry. From the 1997 IPO through 2004, American Capital’s annual rate of net loss on portfolio company assets (based on American Capital’s average annual net appreciation, depreciation, gains and losses excluding interest rate swap agreements) was 0.3% of assets, which results in a loss rate of 0.5% of equity. From our 1997 IPO through the third quarter of 2004 we compare favorably to FDIC insured banks that experienced, on average, net losses of more than nine times that of American Capital, or 4.8% of equity (based on the average annual equity capital and net charge-offs, according to the FDIC Quarterly Banking Profile data). Since banks on average during this period were levered approximately 9.5 to 1, according to the same FDIC data, and American Capital was levered only 0.6 to 1, our net losses on assets had a much smaller impact on equity. An important aspect of American Capital’s regulatory 1:1 leverage limit is that it helps to reduce the risk to shareholders from portfolio losses. In contrast, banks’ loss rate on assets is far more significant when compared to their equity. While mezzanine debt by definition is riskier than senior debt, when you consider our ability to generate offsetting gains from equity investments and the fact that we cannot lever our equity more than once, we believe we have provided our shareholders a better risk adjusted return compared to the average FDIC insured bank. BDC Special Dividends Towards the end of the year, several BDCs regularly pay an irregular dividend or special dividend [and that oxymoronic statement was intentional]. But just becuase it is regularly paid, it is a stretch to say that you can depend on it. But ignoring it is also unwise, because it can be more than 20% of the yearly payout. And valuations should be somewhat based on payouts. I ignored special dividends in the tables above, and thus the valuations are UNDER-valuations. Summation of Problems with BDCs [1] Because of PIKs, EPS is not meaningful, thus P/E ratios, dividend to EPS ratios and EPS growth lack their usual meaning. [2a] The sectors in which BDCs invest vary widely - so it is always the case of comparing apples to oranges when comparing BDCs. And there are other apples to oranges problems: [2b] The percentages of the asset classes that they invest in [debt vs. equity] vary widely. [2c] There is a heck of a lot of variance in the tax treatment of their dividends. [3] There is a lack of dividend history - and I love a long history of predictable dividend growth. Of the BDCs listed here on this site, only four were in existance and paying dividends in 2003. [4] I am not comfortable with those high Price/NAV valuations. But a look at price/NAV ratios over a long spread of time might help here. And 'historically' the current ratios are not high. In the begining I asked "why would you want to buy stock in a company which invests in high risk debt that is yielding over 12%, when the yield on the company that holds those assets is only 8%? And add to that the fact that the BDCs are leveraged." Well . . . that arguement can be used to say that one should not invest in banks, which make loans for more than the yields on their stocks. And BDCs are less leveraged than banks. But REITs - which I currently view as over-valued - sell at yields that are at or above the approximate cap rates of the sum of their properties. With All Those Problems, Why Invest in BDCs? Just take a look at those high yielding dividends, and the short history of very strong dividend growth. Will investing in BDCs add diviersity to your portfolio? Probably, unless you are heavy in small caps or high yield debt funds. And like small caps and high yield debt, I would project that you would not like this asset class in a reccession. But if you are projecting continued economic growth, and if you are heavy in large-caps and foreign equity, then this looks like a sector that gives you diversification. I would also suspect BDC investors would need higher than average risk tolerance. But there is also some upside to risk tolerance. My First Impressions Until I calculated the Price/NAV ratio, I liked REIT-BDC hybred CSE for its high CAGR, its higher than average yield and its low P/E ratio. then I began to disregard the P/E ratio as being meaningless. I like ACAS because it has the most history - and it is a good history. But ACAS has a lower than average CAGR and lower than average yield - which is a recipe for performing below sector average. I like ALD due it is high percentage of lowered taxed dividends, but its dividend history lacks inflation beating growth in three out of the last four years. And one other fact about ALD concerns me after reading the WSJ of 12-09: "the shares of Allied Capital have proven resilient in the face of a two-year criminal investigation by the SEC, the U.S. attorney for the District of Columbia and more recently the Office of the Inspector General of the Small Business Administration and the Justice Department." I might like TICC because of its technology exposure, and PSEC for its energy exposure. But then I was hit in the face by a large dose of FUD - fear, uncertainty and doubt. For right now, I have a wait and see attitude on them all. I believe the projections I read of a 30% chance of recession in 2007. And to me that means that there is a very good chance that the market is going to react to a growing fear of a possible recession early next year - and the BDC valuations will fall. Or maybe I am just searching for a reason to procrastinate. There have been occasions when I felt a sense of urgency to invest in a stock where I felt that stock was undervalued - and the market might quickly come to the same conclusion. I do not fell an urgent need to invest here. And with the Rorschach-like valuation metrics, it appears unlikely that investors with a sudden turn to higher risk tolerance will flood this sector. It seems more likely that investors with a sudden turn to lower risk tolerance will rush out. But you should not trust a BDC newbie to be an accurate judge of the seasonality of BDCs. I am not a 'hot money' investor - so heck if I know what the hot money would do. This is not an easy sector to understand. And it is apparent by the valuations that one can get a premium return by risking a few dollars here. And if one believes - as I do - that the general returns in the stock market will tend to be lower than historical returns due to still high valuations for stocks - then the high yields based on regular dividends plus the year end special dividends plus the growth in dividends that one finds in BDCs will probably out-return the general market averages. How I compiled this list of BDCs I used three sources of information to generate the list of BDCs that I currently follow. The first list of BDC propsects came from the Red Rocks Listed Private Equity Index - which I have read on the IV BDC Message Board was the basis for the new Powershares Listed Private Equity ETF. The URL of that list is http://finance.yahoo.com/q/cp?s=%5ELSTPE. The second list of BDC propects - http://www.wall-street.com/vchart.html - is that site's list of 'BDCs, VC's, and Holding Companies'. And a third list comes from http://bdcs.valueforum.com/ - which has a "BCD Sector Snapshot" in the left hand column of the page. From these lists, I kept companies that had yields over 3% [which eliminated CSWC, KED, MACC, SFE, TINY & UTK] and had earnings estimates published at Yahoo Finance [which eliminated HQH, HQL & MVC]. KED, which plans to invest in Private MLPs, Private GPs, subordinated debt or redeemable preferred stock of publicly traded MLPs and Publicly Traded MLPs, is too new to have paid a dividend, but could end up on this list in 2007. CODI, too, may be on this list soon. ACAS Reports Income/NAV press release of 10-31 & 7-31 For Q3-06 ACAS had Realized earnings (earnings less unrealized appreciation and depreciation) for the quarter increased 96% to $162 million [up 41% to $1.41/share], compared to $82 million [$0.81/share] for Q3-05. Net operating income for the quarter increased 28% to $110 million compared to $86 million for Q3-05. On a basic per share basis, NOI decreased 7% to $0.78/share compared to $0.84/share in Q3-05. American Capital's realized earnings of $1.14 per basic share were 137% greater than the Q3-06 dividend per share. ACAS's net asset value/share at September 30, 2006 was $27.96. The weighted average effective interest rate on ACAS's total investments in debt securities as of 9-30-06 was 12.6%. Net realized earnings (NOI plus net realized gains and losses) for the quarter increased 26% to $131 million [or down 11% to $0.98/share] compared to $104 million [$1.10/share] for Q2-05. On a diluted per share basis, net realized earnings decreased 9% to $0.97/share compared to $1.07/share for Q1-05. For the quarter, the net increase in net assets resulting from operations (NOI plus net appreciation and depreciation and net gains and losses on investments) was $290 million [$2.16/share] compared to $79 million [$0.82/share] in Q2-05. The weighted average effective interest rate on American Capital's total investments in debt securities as of June 30, 2006 was 12.5%. Net Asset Value per Share was $27.63 at the end of Q2-05 compared to $24.37 at the end of Q4-05. ALD Reports Income/NAV press release of 11-08 & 8-02 ALD reported net investment income of $48.7 million [$0.33/share] which included stock options expense of $0.02/share and excise tax expense of $0.02/share. For Q3-05, net investment income was $46.1 million [$0.33/share] which included excise tax expense of $0.01/share. Net realized gains were $9.9 million [$0.07/share] for Q3-06, and were $70.7 million [$0.51/share] for Q3-05. The sum of net investment income and net realized gains was $58.6 million [$0.40/share] for Q3-06 compared to $116.8 million [$0.85/share] for Q3-05. Net income for Q3-06 was $0.53/ share, after net unrealized appreciation of $0.13/share. Net income for Q3-05 was $0.82/share, after net unrealized depreciation of $0.03/share. The private finance portfolio totaled $4.0 billion at value at September 30, 2006. Loans and debt securities, which totaled $2.9 billion at value at September 30, 2006, had a weighted average yield of 12.5%, as compared to 13.0% at December 31, 2005. At September 30, 2006, the company had a weighted average cost of debt of 6.6% and its regulatory asset coverage was 278%. The company is required to maintain regulatory asset coverage of at least 200%. Net asset value per share was $19.38. On 8-02 ALD reported Q2 net income of $33.7 million [$0.24/share] and net investment income of $50.2 million [$0.35/share]. At June 30, 2006, the overall weighted average yield on the interest-bearing portfolio was 12.6%, as compared to 12.8% at December 31, 2005. Net asset value per share was $19.17- unchanged from Q4-05. AINV Reports Income/NAV press release of 11-06 & 8-08 AINV reported net investment income of $33.812 million [$0.41/share] and net investment income, exclusive of accrued net realized gain incentive fee of $35.664 million [$0.44/share] compared with dividends to shareholders of $38.4 million [$0.47/share]. Gross investment income totaled $63.9 million and net expenses totaled $30.1 million. Net Asset Value per share was $16.14. At 9-30-06, the net portfolio consisted of 51 portfolio companies and was invested 64% in subordinated debt, 3% in preferred equity, 8% in common equity and 25% in senior secured loans. The weighted average yields on our subordinated debt portfolio, senior secured loan portfolio and total debt portfolio were 13.5%, 12.8% and 13.3%, respectively. On 8-08 AINV reported net investment income of $31.744 million [$0.39/share] and net realized and unrealized gains of $39.412 million [$0.49/share]. Gross investment income totaled $55.9 million and expenses totaled $24.1 million. The weighted average yields on our subordinated debt portfolio, senior secured loan portfolio and total debt portfolio were 13.6%, 12.7% and 13.3%, respectively, at June 30, 2006 versus 13.6%, 10.0% and 11.8%, respectively, at June 30, 2005. Net Asset Value per share was $15.59. ARCC Reports Income/NAV press release of 11-06 ARCC reported net income: $18.1 million or $0.39 per share and net investment income: $17.3 million or $0.37 per share and net realized and unrealized gains: $813,000 or $0.02 per share - compared to dividends on August 9, 2006 of $0.40 per share. Net assets per share were $15.06. As of September 30, 2006, the weighted average yield of income producing debt and equity securities was 12.27%. The portfolio value of Ares Capital's investments at September 30, 2006 was $1.03 billion. As of September 30, 2006, these portfolio investments (excluding cash and cash equivalents) were comprised of approximately 64% in senior secured debt securities (39% in first lien and 25% in second lien assets), 27 % in mezzanine debt securities, 7% in preferred/common equity securities and 2% in other securities (senior notes/CDO investments). As of 9-30-06, 54% of ARCC's assets were in floating rate debt securities. CSE Reports Income/NAV press release of 11-07 CSE reported net income for Q3-06 of $80.9 million, or $0.47 per diluted share, compared with net income of $72.8 million, or $0.43 per diluted share, for the quarter ended June 30, 2006. This compares to net income of $28.1 million, or $0.24 per diluted share, for the quarter ended September 30, 2005. Adjusted earnings were $122.9 million, or $0.71 per diluted share, for the quarter ended September 30, 2006 compared to $97.1 million, or $0.57 per diluted share, for the quarter ended June 30, 2006. Net investment income for the quarter ended September 30, 2006 increased 18% to $171.8 million, from $145.4 million for the quarter ended June 30, 2006. Gain on investments, net was $7.2 million. The third quarter dividend was $0.49 per share, or $84.6 million. Net finance margin, defined as net investment income divided by average income earning assets, was 8.19% for the quarter ended September 30, 2006, a 20 basis point increase from 7.99% for the quarter ended June 30, 2006. Yield on average interest earning assets was 13.07% for the quarter. Cost of funds was 6.26% for the quarter. Net Assets/share was $11.37 [or Total shareholders' equity $2,017,176,000 divided by 177,377,872 shares outstanding]. GAIN Reports Income/NAV press release of 11-01 GAIN reported Net Investment Income for Q3-06 [it was GAIN's fiscal Q2] of $2,883,886 or $0.17/share, as compared to $1,412,906 or $0.09/share for Q3-05. The annualized weighted average yield on GAIN's portfolio for Q3 was 8.72%. Total investment income was $4,213,928 and Total expenses were 1,330,042. The Ratio of expenses to average net assets (annualized) in Q3-06 was 2.30%. Net assets per share $ 13.71. GLAD Reports Income/NAV press release of 12-06 On 12-06 Gladstone Capital [GLAD] announced Net Investment Income for the fiscal year ended September 30, 2006 increased 11.9% to $19,350,580, or $1.70 per basic share and $1.67 per diluted share, as compared to $17,286,145, or $1.53 per basic share and $1.49 per diluted share for the fiscal year ended September 30, 2005. Net Investment Income for the three months ended September 30, 2006 increased 29.2% to $4,916,268, as compared to $3,805,057, for the three months ended September 30, 2005. Net Investment Income for the three months ended September 30, 2006 was $0.42 per basic and diluted share and $0.34 per basic share and $0.33 per diluted share for the three months ended September 30, 2005. Net Assets/share was $14.02. GLAD's ratio of net expenses to average net assets - annualized was 6.00% for the quarter ending 9-30-06 and the ratio of net investment income to average net assets - annualized was 12.13%. GOOD Reports Income/NAV press release of 10-31 GOOD reported FFO of approximately $2.3 million or $0. 29/share in Q3-06. Net income available to common stockholders for Q3-06 was $1,293,044, or $0.16 per share, compared to $867,411, or $0.11 per share, for the same period one year ago. Total Stockholders' Equity was 117,855,369 less 25,000,000 in preferred shares and then divided by 7,850,901 shares issued results in a calculation of $11.83 net assets per share. HTGC Reports Income/NAV press release of 10-26 HTGC reported net investment income before income taxes increased to $3.1 million [$0.23/share] compared with $885,000 [$0.09/share] in Q3-05. Net income was approximately $1.6 million [$0.12/share] on 13.7 million basic shares outstanding at 9-30-06 measured against approximately $1.6 million [$0.16/share] on 9.8 million basic shares outstanding at 9-30-05. Total debt and equity investment portfolio at value was $237.5 million to 54 portfolio companies. The overall weighted average yield to maturity on HTGC's loan portfolio was approximately 12.75% as of September 30, 2006. At 9-30-06, net assets were approximately $151.3 million, with a net asset value per share of $11.06. HTGC reported Q2 net investment income before income taxes increased to $2.5 million [$0.19/share]. Net income was approximately $3.4 million [$0.26/share]. The fair value of Hercules' debt portfolio as of June 30, 2006 approximated $188.1 million, representing investments in 46 portfolio companies. The overall weighted average yield to maturity on HTCG's loan portfolio approximated 12.80%. At 6-30, net assets were approximately $153.3 million, with a net asset value per share of $11.24. KKR Reports Income/NAV press release of 11-08 KKR in Q3-06 reported net income for the quarter ended September 30, 2006 of $32.6 million, or $0.41/share compared to distributions of $0.52/share. Current period results compare with net income of $18.5 million $0.24/share for Q3-05. KKR's book value/ was $21.16. At the end of Q3-06 KKR had $1,953.539 million [64.7%] in Residential ARM Securities, $167.500 million [5.60%] in Corporate Debt Securities and $877.356 million [29.10%] in Corporate Loans MCGC Reports Income/NAV press release of 10-26 MCGC reported net operating income before investment gains and losses and provision for income taxes of $0.38/share. EPS were $0.42. Dividends were also $0.42. DNOI [Distributable net operating income] per share-record date shares was $0.40 Net asset value per common share at period end was $12.67. Yield on average loan portfolio at fair value in Q3-06 was 12.71%. Cost of funds Average was LIBOR [5.43%] plus Spread to LIBOR excluding amortization of deferred debt issuance costs [1.09%] plus Impact of amortization of deferred debt issuance costs [1.18%] which resulted in a Total cost of funds 7.70%. DNOI/share was $0.38 in Q2-05, $0.30 in Q3-05, $0.36 in Q4-05, $0.41 in Q1-06, and $0.37 in Q2-06. Net asset value was $12.65 at the end of Q2-06 and $12.48 at the end of Q4-05. MIC Reports Income/NAV press release of 10-26 MIC in Q3-06 reported consolidated revenue of $163.3 million and operating income of $13.8 million, respectively. Estimated cash available for distribution totaled $0.52 per share for Q3. Total stockholders' equity $549.104 million divided by 27.05 million shares outstanding [37.56 million shares outstanding currently, but fund from the secondary offerings were not received before end of Q3] results in an NAV of $20.29. MIC reported consolidated revenue of $105.9 million for Q2-06, an increase of 46% over Q2-05. Operating income was $13.6 million, an 81% increase over the June quarter in 2005. MIC reported net income of $4.5 million or $0.17/share. For the six months ended June 30, 2006, MIC generated estimated cash available for distribution to trust shareholders of $1.15 per share. Total stockholders' equity at the end of Q2 was $570.290 million - divided by 27.212 million shares outstanding results in a NAV of $20.95. NGPC Reports Income/NAV press release of 11-06 NGPC had investment income totaled $7.6 million for Q3-06, with $6 million attributable to our targeted investments and $1.6 million attributable to investments in cash equivalents and corporate notes. Operating expenses for Q3 were $2.8 million and included $1.1 million of investment advisory and management fees, and $0.9 million of general and administrative expenses and credit facility interest and fees of $0.8 million. The resulting net investment income was $4.7 million. For Q3-06, NGPC's portfolio experienced net unrealized appreciation of $0.8 million primarily attributable to changes in market prices of investments in corporate notes. Overall, there was a net increase in stockholders' equity resulting from operations of $5.3 million, or $0.31 per share. After giving effect to the $0.25/share dividend, stockholders' equity ( or net assets/share) was $13.99. As of 9-30-06, our portfolio was invested as follows: 30.8% in senior secured term loans, 24.2% in senior subordinated secured notes, 0.6% in participating convertible preferred stock, 5.0% in corporate notes, 1.2% in LLC units, 34.9% in U.S. Treasury Bills, and 3.3% in cash and cash equivalents. At 9-30-06, the weighted average yield on targeted portfolio investments, exclusive of capital gains, was 12.5%. The weighted average yield of our corporate notes was 5.5%. The weighted average yield of our U.S. Treasury Bills and cash equivalents was 4.7%. The weighted average yield on our total capital invested at 9-30-06 was 9.2%. PCAP Reports Income/NAV press release of 11-13 & 8-10 PCAP reported Q3-06 total investment income of $6.9 million. Net investment income was $4.1 million, or $0.26 per basic and diluted share Net income was $3.5 million, or $0.22 per basic and diluted share. Net asset value per share of common stock at September 30, 2006 was $10.38. PCAP had Investments in debt securities of $214,161,069 and Investments in equity securities of $3,372,850. The weighted average yield on their debt investments was 13.7% for the nine months ended September 30, 2006. On 8-10 Patriot Capital reported that it's Q2 net investment income was $3.1 million, or $0.24/share. Net income was $4.6 million, or $0.36/share. Total investment income was $5.8 million on gross investment commitments of $25.3 million. Net asset value per share of common stock at June 30, 2006 was $10.46. the weighted average yield their debt investments was 14.2% for the six months ended June 30, 2006. PSEC Reports Income/NAV MarketWire 9-28 & 11-10 PSEC reported net investment income for Q4-06 was $3.00 million, or $0.42/share - compared to dividends/share of $0.34. Net investment income for the first fiscal quarter [Q1-07?] was $3.27 million, or 33 cents per weighted average number of shares. At 6-30, our net asset value per share was $15.31. The 9-30-06 net asset value per share was $14.86.. PSEC's portfolio on 6-30 was invested approximately $133.97 million in fifteen long-term investments, and the remainder in cash and short-term instruments. The 9-30 portfolio was invested approximately $156.96 million in 17 long-term investments. As of 6-30, PSEC's portfolio generated a current yield of 17.0% across all their long-term debt and equity investments. The 9-30 portfolio generated a current yield of 16.9%. This current yield includes interest from all our long-term investments as well as dividends from Gas Solutions Holdings. Excluding such dividends, our weighted average long-term debt yield as of 6-30, was 14.3% [14.6% as of 9-30]. PSEC estimated that their net investment income for the current second fiscal quarter ending 12-31-06, will be $0.33 to $0.39 per share. TICC Reports Income/NAV MarketWire 8-03 & 11-02 On 11-02 TICC reported Q3-06 net investment income of approximately $6,141,483, or approximately $0.31 per share, net unrealized appreciation on investments of approximately $308,896 and a net realized gain on investments of approximately $309,210. In total, TICC had a net increase in stockholders' equity resulting from operations of approximately $6,759,589, or approximately $0.35 per share, for the third quarter. Net asset value/share was $13.84. The weighted average yield of their debt investments (excluding cash equivalents) was approximately 12.3%. On 8-03 TICC reported Q2 net investment income of $6,280,439, or approximately $0.32 per share, net unrealized appreciation on investments of $811,000 and a net realized loss on investments of $221,952. In total, we had a net increase in stockholders' equity resulting from operations of $6,869,487, or approximately $0.35, per share for the second quarter. The weighted average yield of their debt investments (excluding cash equivalents) was approximately 11.2%. Net asset value at end Q2 was $ 13.81. TAXI Reports Income/NAV press release of 11-06 TAXI announced that net investment income after taxes increased 14% to $2,781,000 or $0.16 per diluted common share in Q3-06 from $2,431,000 or $0.14 per diluted common share in Q2-06. Chief Financial Officer Larry Hall stated, "Net interest income, or our interest income minus our interest expense was $8,705,000, the second highest quarter in our history. Our portfolio yield continues to increase. This quarter it grew to 9.09%, up from 8.99% at the end of the second quarter, and 8.44% a year ago. Our net interest margin increased in the quarter to 4.43% from 4.09% in Q2. Net asset value/share was $9.61. On 11-03 Hilliard Lyons Downgraded GOOD from Long-term Buy to Neutral. On 11-08 Ferris Baker Watts Downgraded ALD from Buy to Neutral. On 11-08 Citigroup downgraded AINV from Buy to Hold, but raised its price target saying Apollo's results showed strong investment returns that may lead to higher future dividends. Citigroup cited the recent price performance for the rating change. On 11-17 Goldman Sachs Initiated coverage of CSE at Neutral. NOTE #1: This page is ment to be a supplement for those already getting monthly sector updates from another source. Data entry errors sporadically happen. Metrics like Debt/Market Cap and should not be ignored. |