The market has had a tough week with a poor jobs report and concerns about the elections in France and Greece over the weekend. Not much is working here. The NASDAQ looks like it will have its worse week since December and the energy sector has just gotten hammered this week. One of the few areas that is working in my portfolio over the last five trading sessions are my positions in Business Development Companies. One of my stocks, TICC Capital Corp (TICC), reported solid earnings this morning and looks poised to continue to generate positive income with a capital appreciation kicker.
Key earnings report highlights and recent events:
- Earnings came in at 27 cents a share, in-line with the consensus estimate.
- Revenue rose 51% and came in around $1mm over estimates at $14.75mm.
- The company announced a quarterly distribution of 27 cents a share, consistent with the previous payment this year.
- The company's CEO will also present at the Wells Fargo Finance event in Greenwich on May 23rd, which hopefully will get the company's story out to a wider audience.
4 additional reasons TICC is good income play at under $9.50 a share:
- TICC yields 11.7% and it raised its distribution by 67% since early 2009.
- Insiders have been net buyers of the stock over the last six months, picking up over $1mm in shares during that time period.
- The company is selling at just 99% of book value and has a very low five year projected PEG (.86) for such a high yielder.
- The stock is selling at under 9 times forward earnings and the median analysts' price target on TICC is $10.75.
Disclosure: I am long TICC.