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THL Credit, Inc. Message Board

  • modopub3 modopub3 Mar 26, 2013 2:30 PM Flag

    why sell off?

    Couldn't find any news anywhere. Already went ex-div. Maybe options expriring?

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    • After uncle bens speech this stock is a go

    • THL said it's offering 6.6 million shares at discount to pay off debt. I've seen other stocks drop on this
      new and usually go right back up. I bought CWT when this happened and made 5G.

    • Wells Fargo downgraded the company today from "Outperform" to "Market Perform". From Street Insider:

      Wells Fargo downgraded BDC sector from Overweight to Market Weight Tuesday, saying it is time to take some profits and limit unnecessary risks.

      "YTD, both the overall market and BDC returns have been robust, up 9.6% and 8.7% respectively," the analsyt comments. "This robustness was echoed in the credit markets, with new investment yields near historic lows despite (1) higher leverage multiples and (2) a spike in covenant-lite deals." As a result of the recent price run as well as the potential degradation in new deal quality, they downgraded the space.

      In addition the the sector downgrade, Wells Fargo downgraded all quartile 4 BDCs under coverage to Underperform. These include: Apollo Investment Corporation (NASDAQ: AINV), Prospect Capital Corporation (NASDAQ: PSEC), BlackRock Kelso Capital (NASDAQ: BKCC), and TICC Capital Corp. (NASDAQ: TICC).

      The firm also downgraded Horizon Technology Finance (NASDAQ: HRZN), PennantPark Investment (NASDAQ: PNNT), THL Credit, Inc. (NASDAQ: TCRD), and Medley Capital Corporation (NYSE: MCC) from Outperform to Market Perform.

      "HRZN declined as a result of heightened scrutiny on those BDCs outside of Quartile 1. Both PNNT/MCC were downgraded on valuation as we believe the share price reflects intrinsic value," the firm notes. "TCRD was downgraded as a result of falling to Quartile 2 in our BDC scorecard."

      At the same time, the firm is increasing exposure to high quality quartile 1 BDCs including Hercules Technology Growth Capital (NYSE: HTGC), Golub Capital BDC (NASDAQ: GBDC), Ares Capital (NASDAQ: ARCC) and New Mountain Finance (NASDAQ: NMFC).

    • Did find a current news release on Reuter's re: closing of four investments. Nothing earth shattering tho.

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