Medley Capital downgraded at Wells Fargo


Medley Capital (MCC) trades for 1.07x NAV vs. 1.02x for its Quartile 3 peers, says Jonathan Bock, downgrading the stock to Market Perform. Other catalysts include the potential for near-term volatility in BDCs thanks to the pending Russell rebalance, near-term credit issues pertaining to two sour Medley investments, and the potential that new origination returns are below the company's cost of capital.

Generally, Bock likes the idea of rolling back exposure to lower quartile BDC names in favor of Quartile 1 BDCs ahead of the Russell moves.

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Comments (3)
  • COBeeMan
    , contributor
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    Although Credit Suisse just upgraded MCC to Outperform!
    31 Mar 2014, 12:40 PM Reply Like
  • Dodurgali
    , contributor
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    Wells Fargo wants to buy some MCC shares.
    31 Mar 2014, 12:55 PM Reply Like
  • kyanaron
    , contributor
    Comments (130) | Send Message
     
    I gotta think these rating companies are full of do do. It seems for example that Ned Davis always says “Avoid" on companies that everyone else says is fine. I pick up a lot of good information from ratings companies, but they rarely make my decision for me.
    31 Mar 2014, 06:49 PM Reply Like
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