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My scope is to assist private companies both abroad and domestic wishing to go public in the U.S. We invest in the company in the earliest stages, and assist in coordinating their audit, legal RTO or IPO. We also offer M&A identification, execution and consulting, Investors relations... More
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  • Time To Look At This Asset Manager 1 comment
    Jan 22, 2014 8:17 AM | about stocks: HCAP

    The end of the year gives us a moment to take a break from the daily stresses from work and life, to come together with family and friends and remembering to be thankful. In addition to basking in relaxation, investors should take this opportunity to review their portfolios and get together their 2014 investment plans. Some questions that you should ponder are: Should I take some profits here? Is my wish list up to date? Has the fundamental/technical analysis for my portfolio holdings changed? Am I maximizing my returns? It is important to answer these kinds of questions because it will help provide you with a game plan before the year is out and the investor then can go into 2014 with more confidence in their strategy.

    As mentioned above, it is important to review your wish list of stocks/mutual funds, to make sure they still warrant being on your wish list. Having an updated wish list is imperative because at some point we will see a correction in the markets and it is important that for you to be able to take advantage of the correction using an updated list if you choose to dollar cost average.

    One such stock that I would suggest you take a look at for a possible addition to your wish list is Harvest Capital Credit Corporation (NASDAQ: HCAP). Harvest Capital is a finance company that provides capital to small businesses. Keep in mind that businesses like Harvest Capital do well during upbeat economic conditions and can get pummeled during downturns. They are economically sensitive because small businesses are not going to be borrowing hand over fist, in theory, during a downturn and period of economic uncertainty.

    Turning to the fundamentals, the company has a market cap of $64 million and is currently rated a "strong buy" from analysts. Harvest Capital has a price to earnings of 3.9 and a forward price to earnings of 9.69. PEG is undervalued at .78, the stock currently trades below book value as seen with a price to book of .71, and a price to cash of 1.39. Harvest Capital has no debt and pays an eye popping 8.95 percent annual dividend. This is backed by their monster cash load, as seen through a cash per share of $10.83. Earnings are expected to rise 498percent this year, 34.22 percent next year, and 5 percent over the next five years. Margins are outstanding with an operating margin of 62.3 percent and a profit margin of 96.7 percent.

    This micro-cap definitely has some interesting metrics that could warrant HCAP to be placed on your watch list. Where else are you going to find a stock that yields almost 9 percent and trades below book value? The catch here is that Harvest Capital is very economically sensitive, as previously stated. An unexpected economic downturn could yield some significant losses. Be sure to do your own research to determine whether or not a stock like Harvest Capital is right for your risk tolerance and your portfolio.

    Stocks: HCAP
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  • Gratian
    , contributor
    Comments (3627) | Send Message
    Hi EG,


    Still feel the same about HCAP?


    Picked up HCAP a while back and have some unrecognized gains sitting on the table.


    So, sitting here this morning about cashing in or if this company is a good long term hold within my portfolio.


    My equity allocation is topped off, so in order to buy something else, something must go.


    Best wishes, gratian
    21 Feb 2014, 07:27 AM Reply Like
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