August 5, 2013: We spent much of the day reading writing as there was very little activity in the market. The BDC ETN BDCS , which we use as a rough and ready proxy for the BDC sector, was down 0.41% on anemic volume.
1. We did review the Medallion Financial (TAXI) earnings, which were as expected. Likewise, the dividend was unchanged at $0.22 from the prior quarter. The stock was down 1.13% on the day. We have no position.
By the way, TAXI is the 12th BDC to report in this earnings season, suggesting we are at the one-third mark.
2. We have been the most impressed by the Fidus Investment (NASDAQ:FDUS) and MCG Capital (NASDAQ:MCGC) earnings releases so far, and increased our positions in both. FDUS is up 0.93% , and MCGC down 0.37% since their earnings releases. Mr Market obviously was not as positive as we were.
3. We wrote a posting in response to a blog that showed up on Yahoo Finance by "Sober Look" called "6 issues to consider when investing in BDCs". We used just the first point as a jumping off point about the difficulty of generalizing about anything where BDCs are concerned, and to point out that a BDC's costs and management fees, even if onerous, are not related to long term performance.
4. We wrote a "hot off the presses" posting about the drop in Solar Senior Capital (NASDAQ:SUNS) stock price in mid-morning. The price was still down, but not as much by close. We speculated as to why the price was down by a bunch. We have no position, but are looking for an entry point.