Nicholas Marshi

MCG Capital: Squeaking By?

To answer Jjason: No, I wouldn't add more shares to my Long position in MCGC. As I alluded to in the article, I actually turned negative on MCGC months ago before the stock price dropped. I sold out of my main portfolio (which is all BDC stocks). However, I failed to sell the Long MCGC position I had in another account. By the time I realized what I hadn't done, the stock price had dropped and I didn't want to realize a major loss. I'm hopeful over time that MCGC will find its way back: probably by achieving the ever more unlikely Broadview IPO, turning around Cleartel (and selling it ideally) and staunching any further bad debt issues with its Control portfolio. If MCGC also successfully invests its SBIC monies and raises a warehouse line for a CLO we might see some earnings growth. However, there are too many uncertainties at the moment to even consider "doubling up" despite the huge nominal dividend yield at the current price level. This might be a 2-3 year hold before MCGC deals with all its problems and success is by no means certain. So I wouldn't say I'm bullish. I'm just stuck and hopeful. Of course, if I start to feel that bankruptcy is a real option I'd sell for whatever I could get but that seems less likely now than it did just a few days ago before the Revolver rejigging.

MCG Capital: On the Knife's Edge

Yes, it is Broadview and not Broadcom. I realized that after draft 3 and tried to change the name wherever it occurred. Clearly I did not edit carefully enough. Sorry


On May 12 04:27 PM joe_no_say wrote:

> It's Broadview, not Broadcom.