Medley Capital: Another Gift From Year-End Tax Loss Selling
Cahaba Research • 44 Comments
Cahaba Research • 44 Comments
Fri, May 20, 5:39 PM
Mon, May 9, 6:44 AM
- Medley Capital (NYSE:MCC) declares $0.30/share quarterly dividend, in line with previous.
- Forward yield 18.15%
- Payable June 24; for shareholders of record May 25; ex-div May 23.
Mon, May 9, 6:39 AM
Sun, May 8, 5:30 PM
Wed, Feb. 10, 10:34 AM
- Net asset value per share fell to $10.01 in Q4 from $11 three months earlier, and, effective Jan. 1, the management base fee is cut to 1.50% on gross assets above $1B. Also MCC Advisors lowered its incentive fee from 20% on NII over an 8% hurdle to 17.5% on NII over a 6% hurdle.
- 143K shares were bought back during the quarter at an average price of $7.68 each, brining buybacks up to 2.5M shares.
- Non-accruals represented about 4.2% of the fair value of the company portfolio and consists of seven positions. Added to non-accrual in Q4 were AAR (energy name), as well as Essex Crane, Lydel, and URT.
- Earnings call transcript
- Downgrading today are Citigroup to Neutral from Buy, and FBR to Market Perform from Outperform.
- MCC lower by 3.4% to $5.76. It's off 24% YTD and 40% Y/Y.
Tue, Feb. 9, 6:46 AM
Tue, Feb. 9, 6:41 AM
Mon, Feb. 8, 5:30 PM
Mon, Jan. 25, 3:16 PM
- Modest declines in the major averages are masking the continued liquidation in a number of financial sectors.
- Hotel REITs: Pebblebrook Hotel (PEB -2.4%), LaSalle Hotel (LHO -2.2%), FelCor Lodging (FCH -2.9%), DiamondRock Hospitality (DRH -3.3%)
- Nonbank servicing: Ocwen Financial (OCN -6.9%), Walter Investment (WAC -10.5%), Nationstar Mortgage (NSM -6.7%), Altisource Portfolio (ASPS -4.6%), New Residential (NRZ -3.2%)
- Mortgage REITs: Two Harbors (TWO -3.8%), Invesco (IVR -4.3%), American Capital Mortgage (MTGE -3.4%), Western Asset (WMC -3.7%), Apollo Residential (AMTG -3.8%), AG Mortgage (MITT -3.9%)
- BDCs: Prospect Capital (PSEC -4%), Apollo Investment (AINV -2.2%), Medley Capital (MCC -4.1%), Gladstone Capital (GLAD -4.4%). A few in this sector are managing gains though: Main Street (MAIN +1%), TICC Capital (TICC +1.9%), Harris & Harris (TINY +1.8%)
Dec. 15, 2015, 5:41 PM
Dec. 15, 2015, 11:17 AM
- The iShares High Yield Bond ETF (HYG +1.5%) and the SPDR High Yield Bond ETF (JNK +1.1%) both continue to gain from lows hit at about midday yesterday.
- The move has roughly matched that of crude oil, which is ahead 1.3% on the session to $36.78 after threatening a $33 handle at its worst levels on Monday.
- Bouncing alongside are those thoroughly roughed-up income vehicles, the BDCs. Among the movers: Triangle Capital (TCAP +5.5%), Apollo Investment (AINV +5.6%) - which added to its buyback last night - Medley Capital (MCC +3.3%), FS Investment (FSIC +3.4%), Fifth Street Finance (FSC +2%), and Prospect Capital (PSEC +3.5%).
Dec. 11, 2015, 3:40 PM
- Treasury yields are plunging, but high-yield is headed the other way again as investors mull a big selloff in the major averages and oil's plunge to below $36 per barrel.
- The pain is widespread, but a panic in credit is particularly painful for BDCs. Hitting the tape a few minutes ago, Jeff Gundlach says "there's never just one cockroach" when credit melts down.
- Prospect Capital (PSEC -5.5%), Ares Capital (ARCC -5.7%), FS Investment (FSIC -3.6%), BlackRock Capital (BKCC -3.8%), Apollo Investment (AINV -3.8%), PennantPark (PNNT -4.1%), Medley Capital (MCC -4.1%), TCP Capital (TCPC -2.5%), Gladstone Capital (GLAD -6.4%).
- ETFs: BDCL, BDCS, BIZD, FGB
Dec. 8, 2015, 12:41 PM
- The market has more than adequately priced in expectations for further credit issues, says the team of Troy Ward and Greg Mason, noting consensus estimates have already been adjusted to reflect limited fees and slower portfolio churn. WIth an average yield of 10% and very low valuations, a 15% return in 2016 could be just a chip shot away.
- As for rising interest rates, perceptions that this is bad for yield investments has also been fully priced in. And once rates rise and investors see earnings not being materially affected, there could be a push to buy.
- Another possible catalyst: The activist push for lower fees.
- Among stocks on their buy list: Hercules Technology (NYSE:HTGC), Alcentra Capital (NASDAQ:ABDC) for improving fundamentals, and American Capital (NASDAQ:ACAS), Fifth Street Finance (NASDAQ:FSC), and Medley Capital (NYSE:MCC) thanks to activist involvement.
- ETFs: BDCL, BDCS, BIZD, FGB
Dec. 7, 2015, 9:59 AM
- Medley Capital (NYSE:MCC) had a big move on Friday after announcing results, boosting the buyback, and getting a cut in management fees. The sell-side gives its thumbs up today, with both KBW and Wells Fargo upgrading to Outperform. KBW's price target of $10.50 (up from $9) is about 40% higher than Friday's close.
- The stock's up 3.2% today to $7.81.
- Previously: Medley Capital boosts buyback, manager cuts fees (Dec. 4)
Dec. 4, 2015, 7:33 AM
- FQ4 net investment income of $17.6M or $0.31 per share v. $17.24M and $0.30 in FQ3. Dividend is $0.30.
- Net asset value of $11 per share down from $11.53. Last night's close was $7.34.
- 1.4M shares bought back during quarter at an average price of $8.35, bringing total program buybacks up to 2.4M shares for $8.89 each. The board boosts the buyback plan to $50M and extends its duration through the end of next year.
- The base management fee will be cut to 1.5% on AUM above $1B. The manager's incentive fee is changed from 20% over an 8% hurdle to 17.5% over a 6% hurdle.
- A conference call is set for 10 this morning.
- Previously: Medley Capital NII in-line, beats on total investment income (Dec. 4)
- MCC flat premarket
Dec. 4, 2015, 7:17 AM
- Medley Capital (NYSE:MCC): FQ4 NII of $0.31 in-line.
- Total investment income of $36.61M (-4.3% Y/Y) beats by $1.77M.
Medley Capital Corp. is an externally-managed, non-diversified closed-end management investment company. Its investment portfolio consists of senior secured first lien loans and senior secured second lien loans. The company was founded on April 23, 2010 and is headquartered in New York, NY.
Industry: Investment Brokerage - National
Country: United States
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