78% of Book Value. Very cheap with good potential from SBA and new secured funding. Now if they start paying a regular dividend we will go right up to book value. Slicehammerick you have great insight into these BDC's. Any new thoughts on SAR and their earnings. if so I would love to hear them good or bad.
Wish I could get more enthusaistic VG. It was another good quarter, credit quality trends look better than the average BDC, etc. Still below scale though with only about 40% of interest and fee income going to NII. Of course the CLO notes would be producing another $3-5 if they were invested into standard mezz vehicles so NII power is better than the income statement currently reveals. A good comp is MVC, which trades for almost exactly the same discount to NAV.
On the call they suggested that $200ml in assets is up to scale in their opinion and would trigger a dividend. Personally I could care less about a dividend but I think that is a catalyst for the stock.
Net net I just don't like any BDCs here, although I expect to own SAR again some day. I think you make your money in credit vehicles in the bottom half of the cycle and we ain't there anymore.
I am happy in my sub notes paying 7.7% on my cost.
I was a little disappointed that they did not announce a regular dividend. I own a bunch of P/S issues in various BDC'S and recently sold the common of my long term holding of ARCC and others for the same reason you stated. However I am sticking with SAR since there is a large discount to NAV. I also think these guy's are smart and like that they own a bunch of stock. Thanks for the feedback .