July 24, 2012: Lower mid-market focused lender and investor Business Development Company Gladstone Investment (NASDAQ:GAIN) down for 6th day in row, or -7.5% since July 17th. Why ? No news on Yahoo, but Investor Relations page shows shelf offering for potential equity/Preferred offering. However, CEO Gladstone promised still waiting for shareholder approval of below NAV equity raise and promised only to raise equity if price close to NAV. Price nowhere near NAV (nearly 20% gap by our count).
Other possible explanation: deterioration on one of handful of portfolio companies at GAIN that have been under-performing, and word is out to some investors ? Or larger investor selling out ? Just educated guessing.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I am long the Gladstone Preferred (GAINP)