SAN FRANCISCO, CA--(Marketwired - September 06, 2016) - Money manager Adrian Day provides an update of his non-resource holdings and his interpretation of the Federal Reserve's activities.
Included in this article is: Gladstone Capital Corp. (
All of the Business Development Companies have moved up strongly in recent months from their grossly oversold year-end levels, in line with many other "dividend" plays, such as utilities. In general, we are holding, given the still-high yields and improvements at the companies, but not buying given the strong recent stock movement as well as yields that are coming down to historical norms.
Continue reading this article: Few Buys in Global Markets After Rallies
Gladstone Capital Corp. continues to experience net asset growth, with new originations exceeding ongoing high repayments of existing loans. NAV per share rose 3 cents. Net investment income fell slightly for the quarter, but still covers the dividend. The company also used a small part of its buyback authorization, spending $288,000 to buy shares at $6.95 each. With debt a reasonable 72% of equity, the company has meaningful dry powder, but with the shares trading above book value again, it is possible that the company decides to use the opportunity to raise more equity. We don't think there is a rush to raise equity, but it's a risk. Following the strong rally in the stock price, from under $7 in June, the stock is now yielding 9.8%. We are holding.
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The Gold Report shares investment ideas for the precious, base and critical metals sector. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
DISCLOSURE:
Gladstone Capital Corp. is a billboard advertiser of Streetwise Reports. The companies mentioned in this article were not involved in any aspect of the article preparation or editing. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
The full disclosure is at the end of the published article: Few Buys in Global Markets After Rallies
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Paul Guedes