Wells Fargo initiates coverage on TCP Capital (NASDAQ: TCPC) with a Outperform rating and $18.50-$19.50 valuation range.
Analyst Jonathan Bock cited: (1) the stock's attractive valuation at 1.03x NAV, (2) the potential for NOI growth via leverage/portfolio churn, (3) the lower risk nature of the portfolio (i.e. heavily weighted towards senior secured investments), and (4) the company s alignment with shareholders through a management fee which includes realized and unrealized gains and losses.
He added, "we believe allocating to Quartile 1 BDCs like TCPC is sensible based on (1) strong dividend coverage, (2) a strong liquidity position and (3) an attractive cost structure. Our 2013/2014 NOI/share estimates are $1.62 and $1.61, respectively."
There is nothing to ponder...These offerings are business as usual..Share price will be back in the 16s within 30 days...The only possible thing to ponder is the number of insiders that have been accumulating shares over the last few months. Lots of smart money behind this company. It will be a profitable investment.