Seekingalpha.com
0
All posts from Seekingalpha.com
Seekingalpha.com in Seekingalpha.com,

Prospect Capital's NAV, Dividend, And Valuation Compared To Several BDC Peers (Post Calendar Q2 2015 Earnings) - Part 1

Part 1 of this article compares PSEC's recent quarterly and trailing twelve-month change in NAV, quarterly economic return, and current valuation to several BDC peers.

Part 1 also performs a comparative analysis between each company's investment portfolio as of 6/30/2015.

This comparative analysis includes each company's oil & gas exposure, weighted average annualized yield on its debt investments, and the percentage of debt investments having floating interest rates as of 6/30/2015.

The SEC recently "officially" charged a company within AINV's investment portfolio with "accounting fraud". Even if restructured, AINV's debt investment will likely experience material depreciation in the current quarter.

My current Buy, Sell, or Hold recommendation for PSEC and each company analyzed is in the "Conclusions Drawn" section of the article.

The focus of PART 1 of this article is to analyze Prospect Capital Corp.'s (NASDAQ:PSEC) recent results and compare several of the company's metrics to four other business development company ("BDC") peers. This analysis will show past and current data with supporting documentation within two tables. Table 1 will compare PSEC's recent NAV and economic return (loss) to the four other BDC peers. Table 1 will also provide a premium (discount) to NAV analysis between PSEC and the four other BDC peers using stock prices as of 9/4/2015. Table 2 will compare the company's investment portfolio as of 6/30/2015 to the four other BDC peers.

I am writing this two-part article due to the continued requests that such an analysis be specifically performed on PSEC and several of the company's BDC peers. Understanding the general characteristics of each company's investment portfolio can shed some light on which companies are possibly "overvalued" or "undervalued" strictly per a "numbers" analysis. This is not the only data that should be examined to initiate a position within a particular stock/sector. However, I believe this analysis would be a good "starting point" to begin a discussion on the topic.


More