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MCG Capital Discusses Q4 2013 Results (Webcast)Wed, Mar. 5
MCG Capital Corporation Q4 2008 Earnings Call TranscriptMar. 21, 2009
MCG Capital Corporation Q2 2008 Earnings Call TranscriptAug. 18, 2008
MCG Capital Corporation Q1 2008 Earnings Call TranscriptMay. 27, 2008
MCG Capital Corporation Reports Fourth Quarter 2013 and Annual Results and Distribution of $0.125 Per ShareGlobeNewswire (Wed, 7:30AM)
GlobeNewswire (Mon, 8:30AM)
GlobeNewswire (Feb 26, 2014)
MCGC vs. ETF Alternatives
Wednesday, Mar 512:45 PM
Wednesday, Mar 511:43 AM
Wednesday, Mar 511:43 AM| Comment!
- It's a tough earnings call for MCG Capital (MCGC -9.2%) after guiding to a sharply lower distribution this year in a tough environment for finding investments (it hasn't yet booked one in Q1).
- Listen to a replay on Seeking Alpha.
- With net asset value per share of $4.74 (off from $5.18 a year ago, and $5.65 two years ago), management spent a good portion of the call fielding questions about putting the company up for sale or being far more aggressive with buybacks (current stock price is $3.99).
- Hoping to jump-start business, the company promotes CFO Keith Kennedy to President.
- Earlier coverage of today's earnings
Wednesday, Mar 57:52 AM
Wednesday, Mar 57:52 AM| 4 Comments
- Net operating income of $6.3M or $0.09 per share compares to $0.125 dividend. $37.1M of originations and advances during quarter, including $33M to two new portfolio companies. $39.6M of portfolio monetized. 512K shares repurchased at average price of $4.73 each. For full year, about 1M shares repurchased at average price of $4.62 each. Operating efficiency: Costs (excl. interest expense) as a percentage of total assets falls to 2.2% from 3.6% two years ago.
- Outlook: "We believe that current market conditions in our primary lending markets are consistent with the peak of a credit cycle. The current supply of debt capital exceeds the demand by issuers in our markets, resulting in lower pricing and weaker contractual protections ... We intend to redeploy our excess liquidity in a cautious and deliberate manner." Money will instead go to buybacks as share repurchase program is boosted to $35M from $25M.
- NOI for FY2014 is guided for $0.25-$0.30 per share vs. $0.42 for 2013. Management expects distribution to be cut to something in the area of $0.07 per share for the rest of 2014.
- MCGC -0.5% premarket
- Q4 results, press release
- Last week: Hercules warns over frothy market
Wednesday, Mar 57:33 AM
Wednesday, Mar 512:05 AM
Tuesday, Mar 45:30 PM
Tuesday, Mar 412:05 AM
Monday, Mar 35:30 PM
Wednesday, Feb 261:16 PM
Wednesday, Feb 261:16 PM| 14 Comments
- WIth business development companies getting the boot from S&P indices, will the Russell follow suit? It's a significant issue as investors are far more heavily invested in BDCs though the Russell indices than through S&P, writes Brendan Conway. He notes ownership of BDCs by Russell-tracking index funds are as high as 38 days worth of trading volume, and Wells Fargo estimates there are 24 BDCs where 10 or more days of average volume would be required to unload them.
- Wells, however, does not see Russell following S&P's lead, with item #1 being Russell's desire to "represent small cap reality." "Russell Indices receive acclaim because they are willing to provide investors access to the true investable small cap universe. To the extent BDCs are excluded, this would deprive investors the opportunity to invest in what has become a very large/growing industry."
- The following list is those BDCs with 10 or more days of average volume in index funds tracking Russell indices.
- NGPC 38.23 days of volume, CSWC 29 days, SCM 23.5, FDUS 20.7, GARS 20, MVC 19.7, SUNS 18, WHF 17.8, SLRC 17.2, CPTA 16, MCGC 15.1, BKCC 14.9, TCRD 14, HRZN 14, TCAP 13.9, PNNT 13.3, HTGC 12.6, TICC 12.6, GLAD, 12.4, GBDC 12.3, KCAP 12.2, TAXI 11.8, MAIN 11.4, NMFC 9.98.
- Related ETFs: BDCL, BDCS, BIZD
- Other major names - no doubt included in the indices, but whose holdings are less than 10 days of average trading volume: PSEC, FSC, ARCC, AINV, MCC, HTGC, TCPC, FULL, GBDC
Wednesday, Oct 302013, 7:57 AM
Wednesday, Oct 302013, 7:57 AM| Comment!
- Net asset value of $5.10 per share vs. $5.18 at the start of the year, and last night's close of $5.24.
- $60.9M of debt portfolio monetized and company expects another $20M-$40M for the remainder of the year. Full year monetizations should be $190M-$210M, about double the amount anticipated at the start of the year. Over the next year, another $90M-$120M of monetizations are expected.
- At the same time, company "took active steps" during quarter to shift resource to asset management operations, including hiring of origination staff.
- NOI per quarter should range from $0.08-$0.10 over the next 2-3 fiscal quarters before increasing to $0.11-$0.13 as capital is fully deployed. Quarterly dividend of $0.125 per share is expected to be maintained during this time.
- Board authorizes a $25M share repurchase program. For the nine months ended Sept. 30, about 500K shares were bought back at average price of $4.50 per share.
- Conference call at 9 ET.
- Q3 results, press release.
- MCGC no trades premarket.
Wednesday, Oct 302013, 7:41 AM
Wednesday, Oct 302013, 12:05 AM|Wednesday, Oct 302013, 12:05 AM| Comment!
Tuesday, Oct 292013, 5:30 PM|Tuesday, Oct 292013, 5:30 PM| 1 Comment
Thursday, Aug 152013, 11:12 AM
Thursday, Aug 152013, 11:12 AM| 13 Comments
- Anything paying income is again being particularly hard hit by the rise in Treasury yields (the 10-year now at a 2-year high of 2.8%).
- Selections in mREITs (REM -2.1%), (MORT -1.9%) include RAIT Financial Trust (RAS -4.1%) - whose IRT had an ill-timed IPO yesterday and Ellington Residential (EARN -4.8%) - the market not caring about reasonable Q2 performance, a hefty discount to book, and the launch of a repurchase program. Other mREITs: CYS Investments (CYS -3.6%), Apollo (AMTG -3%), Newcastle (NCT -5%), Invesco (IVR -2.7%), Arlington Asset (AI -1.2%). A leveraged ETF play: MORL.
- Hanging in there relatively well are the BDCs: Fifth Street (FSC -1.3%), Triangle (TCAP -1%), MCG (MCGC -1.2%), Hercules (HTGC -1.2%), Ares (ARCC -0.3%).
- BDC ETFs: BDCS, BDCL, BIZD.
- In emerging markets fixed income, a trader takes note of EDD, a closed-end fund now trading at more than a 15% discount to NAV.
- Emerging market bond ETFs: EMB, LEMB, PCY, EMLC, ELD, PFEM, EBND, VWOB.
Tuesday, Aug 62013, 10:21 AM
Tuesday, Jul 302013, 10:07 AM
Tuesday, Jul 302013, 10:07 AM| Comment!
- MCG Capital (MCGC +2.1%) net operating income (before investment gains/losses) of $7.6M up 35% Y/Y, helped by $2.1M decline in G&A expense thanks to $1.8M in severance costs a year ago
- Spread to Libor on loan portfolio of 12.1% vs. 10.7% a year ago
- $70.9M in fundings vs. $15.9M in Q1
- Monetized $19.8M in debt portfolio
- $96.6M in cash on hand for new investments
- Outlook: Monetizations of $30M-$50M for rest of 2013, with $20M-$30M expected to reduce borrowings; new originations expected at $500M-$530M
- Previous: Earnings, $0.125/share distribution declared