10.15 0.00 (0.00%)
After hours: 4:15PM EDT
|Bid||10.14 x 1800|
|Ask||10.15 x 1000|
|Day's Range||9.87 - 10.16|
|52 Week Range||5.42 - 16.40|
|Beta (5Y Monthly)||1.50|
|PE Ratio (TTM)||12.88|
|Earnings Date||Jul 30, 2020 - Aug 03, 2020|
|Forward Dividend & Yield||1.28 (12.77%)|
|Ex-Dividend Date||May 13, 2020|
|1y Target Est||11.81|
Editor's note: This column is part of InvestorPlace.com's Best Stocks for 2020 contest. Neil George's pick for the contest is Hercules Capital (NYSE:HTGC).The second quarter of 2020 had one of the best returns for the U.S. stock market since 1998. The S&P 500 returned 20.5%, making for a huge rebound from the ghastly first quarter's plunge. And while the S&P 500 is still in the red by 3.1%, it's way, way better than that huge plunge resulting in a loss of 33.8%.But what really performed in the second quarter was the technology sector stocks. The S&P Information Technology Index returned 30.5% for the second quarter. That makes for a near-50% better return than for the general market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut one of my favorite stocks inside the model portfolios of my Profitable Investing did better than both the general market and the tech market. It also happens to be my pick for InvestorPlace.com's Best Stocks contest. Hercules Capital (NYSE:HTGC) stock returned 41.5%. And it did so by being at the heart of U.S. technology in Palo Alto, California. In fact, it's one of the prime companies working to develop technologies -- and it cashes in well along the way.Source: Bloomberg Hercules Capital (HTGC) Total ReturnHercules Capital did all this with big price gains and its ample series of regular and ongoing special dividends. HTGC stock has an annual yield of 13.7%. And this isn't just a flash in the pan for shareholders in this company. Over the trailing 10 years, the stock has returned 186.1% for an annual equivalent return of 11.1%. That provides evidence of a whole lot of dependability. Hercules Benefits From a Big Lift for TechHercules Capital is an alt-financial company providing finance with equity participation to tech companies in various stages of development. Tech is one of the better forward-looking segments -- even through the novel coronavirus. That's because the sector is providing solutions for more remote commerce, management, as well as life science products and services. Many of Hercules' highly diversified portfolio companies should continue to advance.It is structured as an investment holding company, also known as a business development company (BDC) under the Investment Company Act of 1940. BDCs were further codified under the Small Business Investment Incentives Act of 1980. Both of these bits of U.S. law allow the company to largely avoid federal corporate income taxes. In other words, this helps Hercules Capital generate more cash and fulfill bigger dividend distributions. * 7 Utilities Stocks to Buy With Reassuring Dividends Hercules is a VC-style firm that focuses entirely on technology and tech-related companies in various stages of development. It provides loans to fund company development as well as asset-based finance. It works with its companies to bring them to IPOs or acquisition by larger firms. And since its founding back in 2003, it has successfully worked with nearly 500 companies, bringing billions of dollars of value to the markets.Unlike many other BDCs, it does not participate in collateralized loan obligations (CLOs) nor does it involve mortgage loans or mortgage-backed securities (MBS). This limits its risk and aids in its transparency for shareholders. All About Hercules Capital's PortfolioHTGC breaks down its portfolio of companies into four primary groups. The first is life sciences, which includes many drug and therapeutic companies. Then there's general technology which includes numerous class-leading companies in various businesses and markets. The last two groups are sustainable and renewable energy companies and special opportunities.Life sciences companies make up about half of its current portfolio. The full list of the current portfolio list can be found here. Other than its life sciences companies, the rest of its portfolio spans tech companies in 16 industry groups.Hercules has plenty of bold-faced names that it successfully worked with over the years. And currently, it works with companies including FanDuel in the increasingly popular sports gaming market. It has BrightSource Energy in renewables. Oh, and HTGC also has American Superconductor (NASDAQ:AMSC), which is leading in greater power efficiencies.Another great thing about Hercules is that it's benefiting from current tech trends. In its portfolio it has DocuSign (NASDAQ:DOCU) for online contracts and agreements as well as Evernote for cloud document management. And it has innovative food brands including Annie's and Impossible Foods. Lastly, for those seeking more personal and family information, it also has 23andMe as well as Ancestry.com. How Does HTGC Work?So how exactly does it work? To start, know that the financing isn't just about making a loan to these companies. Hercules also get equity stakes as part of each transaction, and these stakes provide the company with gains as its portfolio businesses progress.And it just doesn't sit around waiting for the phone to ring. Instead, Hercules relies on its key location. It is based in the U.S. tech center of Palo Alto, California, so it knows everybody in technology. And it also has strategic offices around the country which help it connect to other customers and financial partners. For example, it has a very special team in Washington, D.C. The U.S. government provides plenty of opportunities for tech companies -- and Hercules works to make things possible for its clients.Hercules doesn't just stop at financing and equity participation -- it also provides guidance as companies develop and mature. In turn, this helps the companies become more profitable for Hercules. Best Stocks: Pick HTGC for Dividends and ValueHTGC stock is a great pick because of its dividends. It distributes dividends in regular amounts, currently offering up 32 cents per share. But it also has additional special distributions throughout the year, including the 8 cents it paid on March 9. That brings the annual dividend to a whopping 13.7%.But what really makes for a compelling buy is that the stock is so cheap -- even with the big return over the past quarter. Even with all of the embedded technology equity participation and all of the income-generating assets, the stock is valued barely above its intrinsic value. The price-book is only 1.04 times. That compares to the average price-book of the S&P Information Technology Index members of 8.86 times making Hercules a genuine bargain right now. And with the S&P Information Technology's average dividend yield at only 1.2%, Hercules' 13.7% is even more of a value proposition.I have Hercules Capital as a buy ideally in a taxable account under $12.25.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine … one that can help you collect $208 every day the market's open. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Best Stocks for 2020: Hercules Capital Stock Returned 41.5% in Q2 and Is Still Cheap appeared first on InvestorPlace.
In this article we will take a look at whether hedge funds think Hercules Capital Inc (NYSE:HTGC) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips […]
Albireo Pharma, Inc. (ALBO), a clinical-stage orphan pediatric liver disease company developing novel bile acid modulators, today announced it has agreed to terms with Hercules Capital, Inc. (HTGC) on a debt facility to provide up to $80 million of new capital, and will receive $15M under a restructured royalty monetization agreement with HealthCare Royalty Partners (HCR) for elobixibat in the treatment of chronic constipation in Japan. Elobixibat, approved in Japan for the treatment of patients with chronic constipation, is the first ileal bile acid transporter (IBAT) inhibitor approved anywhere in the world. “These funding arrangements with new and existing partners provide the company additional flexibility and cash runway into the beginning of 2022, past the planned approval and commercial launch of odevixibat for the treatment of progressive familial intrahepatic cholestasis,” said Ron Cooper, President and Chief Executive Officer of Albireo.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty finance provider to innovative, venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that the U.S. Small Business Administration ("SBA") has issued a "green light" or "go forth" letter inviting Hercules to finalize its application process to obtain a license to form and operate a third Small Business Investment Company ("SBIC") subsidiary, following the Company’s recent presentation to the SBA committee.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company") today announced the completed issuance of a private offering in aggregate principal amount of $70.0 million 4.31% Notes due June 2025 (the "June Notes"). On February 5, 2020, the Company completed the initial issuance of $50.0 million 4.28% Notes due February 2025, which were initially assigned a BBB+ rating by Kroll Bond Rating Agency.
Hercules Tech (HTGC) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
G1 Therapeutics, Inc. (Nasdaq: GTHX), a clinical-stage oncology company, today announced that the company has entered into a debt financing agreement with Hercules Capital, Inc. (NYSE: HTGC) for up to $100 million. G1 plans to use the proceeds to fund commercialization and further development of trilaciclib, its first-in-class investigational therapy designed to improve outcomes for people with cancer treated with chemotherapy.
On CNBC's "Mad Money Lightning Round," Jim Cramer said that Hercules Capital Inc (NYSE: HTGC) is like a venture fund, but we don't know what it owns.Cramer is not a buyer of Caleres Inc (NYSE: CAL). He said that footwear is right in the crosshairs of the whole world and he sees it as a take the money and run situation.Cognex Corporation (NASDAQ: CGNX) is a company that actually makes things and it should be celebrated, said Cramer. He likes the stock.Cramer prefers Constellation Brands, Inc. (NYSE: STZ) over Anheuser Busch Inbev NV (NYSE: BUD).Instead of Nio Inc - ADR (NYSE: NIO), Cramer would buy Tesla Inc (NASDAQ: TSLA).Noble Energy, Inc. (NASDAQ: NBL) is a good company and it has some good assets, but it is an oil company, said Cramer. He would rather be in something that has more growth.Frontline Ltd (NYSE: FRO) is a trading vehicle and that is not Cramer's style. He prefers investments.Cramer doesn't want to go against Draftkings Inc (NASDAQ: DKNG). He wants to go with the rally.See more from Benzinga * Cramer Shares His Thoughts On DraftKings, Wells Fargo And More * Cramer Gives His Opinion On Chipotle, Clorox And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ladies and gentlemen, thank you for standing by, and welcome to the Hercules Capital Q1 2020 earnings conference call. With us on the call today from Hercules are Scott Bluestein, CEO and chief investment officer; and Seth Meyer, CFO. Hercules first-quarter 2020 financial results were released just after today's market close and can be accessed from Hercules Investor Relations section at htgc.com.
Hercules Tech (HTGC) delivered earnings and revenue surprises of 2.78% and 5.50%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced its financial results for the first quarter ended March 31, 2020.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty finance provider to innovative, venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, is pleased to announce that its Board of Directors has declared a first quarter 2020 cash distribution of $0.32 per share. The following shows the key dates of the first quarter 2020 distribution payment:
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), will conduct both its 2020 Annual Meeting of Stockholders and its Special Meeting of Stockholders by virtual meeting on Friday, June 12, 2020 at 9:00 a.m. and 10:00 a.m. (Pacific Time), respectively. The proxy statement for each meeting will be mailed separately on or about April 29, 2020 to shareholders of record as of April 20, 2020.
So, what’s going on in the stock markets? Are they completely haywire? Since February 19, when the bull market ended, the Dow Jones has fallen 36.6% and then gained back, in uneven steps, some 26.4% from the trough. Movements have been similar in the S&P 500 and the NASDAQ. For the last two weeks, both the S&P and Dow have been holding fairly steady – the S&P near 2,800 and the Dow near 23,500.Yet, there are more questions raised than answers. Are we in a true rally, or will the slide resume? What will happen when people return to work; will the economy pop back up again, or are we in a new recession? And if a recession, how bad will it get? The answer to that last may be worse than anticipated: the last five weeks have seen unemployment claims soar to 26 million.Taking the bearish view, Mark Jolley of CCB International Securities believes that markets will start to fall again – and drop to some 15% below their previous lows for the year. Supporting his thesis that the current rally is a temporary ‘bear market rally,’ Jolley says, “…central banks can’t stop the weakness we’re seeing in growth, they can’t stop the severe earnings decline that we still are going to get and they can’t stop corporate bond defaults.”If he’s right, then we are going to see a messy earnings season over the next few weeks. And since that will hit the markets hard, it’s time to consider defensive stocks, and how to protect your investment portfolio. The purpose of market investing is to make money: you buy low and sell high, realizing profits on the way. But that’s not the only route. Dividend stocks, which share company profits with stakeholders through regular dividend payments, provide a steady income stream for investors, no matter where the markets go.Not all stocks pay out a dividend, but those that do can be lucrative. The average yield right now, among S&P listed dividend payers, is about 2%, about triple the return available from Treasury bonds. With a bit of diligence, aided by TipRanks database, it’s easy to find plenty of stocks with reliable dividend payments and far higher yields than average.We picked 3 names that show impressive dividend yields above 8% and offer an upside potential of at least 15%. It’s a combination of factors that make them attractive as defensive portfolio moves in a bearish market.Ares Capital Corporation (ARCC)We’ll start with an asset management company, a niche that frequently pays out excellent dividends. Ares Capital is no exception to that generality – the company’s current dividend yield is impressive, over 14%. Ares supports its dividend with a wide-ranging portfolio of debt and equity investments in mid-market US companies.Ares pays out 40 cents per share quarterly, or $1.60 annually. The payout ratio is high, at 88%, and shows a company commitment to returning profits to shareholders. Ares grew its dividend slowly over the past three years, usually by maintaining the regular payment and sending out special payments when possible. Q4 saw an additional 2 cents per share paid out that way. For Q1, the dividend has been declared at 40 cents.Two months ago, Ares reported solid Q4 results, meeting the forecasts on earnings and revenue and supporting the special dividend payment. The top line grew 14% year-over-year, to $1.53 billion, while EPS came in at 45 cents per share. A possible cloud, especially in light of Q1 economic developments, was the 28% increase in overall expenses. Looking ahead, Ares sees Q1 EPS at 43 cents, more than enough to keep up the above dividend payments.Writing from Compass Point, analyst Casey Alexander likes ARCC’s position in the business development world. He writes, “In an era where BDCs were pushing hard on incremental leverage and raising target leverage ranges simply to allow themselves to cover the current dividend, ARCC was patiently originating new deals, keeping leverage modest, and raising incremental equity capital in measured doses while still maintaining solid dividend coverage. We enthusiastically supported this strategy… ARCC is unquestionably a blue chip BDC, with a best in class management team.”In line with this view, Alexander puts a $13 price target on ARCC, suggesting room for a 15% upside potential in the coming year. (To watch Alexander’s track record, click here)Alexander, while bullish on the stock, is somewhat conservative compared to the general Wall Street view here. Ares Capital has a Strong Buy analyst consensus rating, based on a unanimous 12 Buys set in recent weeks. The average price target is higher than Alexanders, at $16.38, and implies a stronger upside potential of 44% from the $11.35 share price. (See Ares Capital stock analysis on TipRanks)MGM Growth Properties (MGP)Next on our list is a real estate investment trust, a niche that frequently appears in any review of defensive dividend plays. REITs are required by tax law to return a high percentage of their profits to shareholders, and many use high-yield dividends as the vehicle of choice. MGM Growth Properties is typical of its niche in that regard. MGP focuses its own portfolio on large entertainment destinations – the company owns 13 properties in 8 states, mostly luxury casinos and hotels, with a combined total of 27,442 rooms. MGP’s operations brought in $881 million in revenue in 2019.That revenue $275 million in net income, which was returned to shareholders through the 47.5 cent quarterly dividend. At $1.90, the annualized payment gives a yield of 8.1%, 4x the S&P average and a fine return in today’s climate of low interest rates. The company has been raising the dividend in small increments over the past four years, and the current payout ratio is 81.9%, indicating that the payment is safe at current income levels.Deutsche Bank analyst Carlo Santarelli, in his review of the stock, maintained his Buy rating on MGP along with the $30 price target that implies a robust 29% upside potential. (To watch Santarelli’s track record, click here)Supporting his bullish stance, Santarelli writes, “We continue to see considerable value in MGP at current levels and believe MGM's considerable capacity to pay rent is underappreciated… We remain favorably inclined towards the gaming REIT subsector and believe MGP is well positioned from a liquidity perspective.”Overall, MGP has received 9 recent analyst reviews, breaking down as 7 Buys versus just 2 Holds and making the analyst consensus rating a Strong Buy. Santarelli’s forecast for the stock is a bit more cautious than his peers’ average; the stock has current trading price of $23.20 and an average price target of $31.22, indicating a 34% upside potential for the next 12 months. (See MGM Growth stock analysis on TipRanks)Hercules Capital (HTGC)Last on our list is a venture firm, a finance company that invests in start-ups, providing the funding, capital, and debt market access that small, early-stage companies so desperately need to but have such difficulty finding. Hercules focuses on the financial SaaS sector, life sciences, and technology, and to date has committed some $10 billion to its portfolio.Hercules ended 2019 with a solid cash position, having $235.5 million in liquid assets available, a sum that included $64.4 million in unrestricted cash. The company uses its excellent cash position to fund a reliable, and steadily growing, dividend. The current payment is 32 cents quarterly, and the company felt confidence enough to issue a special 8-cent payment in Q4 to supplement the regular dividend. The annualized payment is $1.28, and gives a sky-high yield of 14.7%.Aaron Deer, writing on Hercules for Piper Sandler, sees a sound future for the company, despite the COVID-19 epidemic: “We project solid loan production for the first quarter, but despite a big pipeline to start the year, that the outlook becomes hazier for subsequent periods. Increased caution among client companies may result in less loan demand or smaller deal sizes, though existing borrowers may look for larger lines, and competitive pressures from both equity and debt investors may wane some, allowing for better pricing on new deals… Hercules is well positioned with capital and liquidity to operate effectively through uncertain market conditions…”Deer gives the stock a $10 price target, implying an upside of 15%, and supporting his Buy rating. (To watch Deer’s track record, click here)Wall Street is generally more bullish than Deer’s review above. The Strong Buy analyst consensus on Hercules is based on 6 to 1 Buy/Hold split among the reviews. Shares are selling for $8.70, and the average price target, at $12.86, suggests that there is room for 48% share appreciation over the next year. (See Hercules stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
It is never too early or too late, and no one is too young to begin investing. I know this, as I began to learn as a small child. I started by learning the basics of how companies issue stock, and how stocks are then bought and sold on the exchanges. And my learning commenced with building a model portfolio that I would paper trade. Each day I would check the stock prices -- which way back when were listed in the daily newspapers.I would go on to open a small brokerage account and work with my own money -- all supporting my learning experience. Of course, I would gain and lose along the way.Back then, commissions were a lot steeper than the discounted -- and even free -- rates of today. So, my choices were more about what to buy and own. I had to have a high level of confidence to overcome the costs of buying and selling, which meant I had more "buy and own" in my portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI would later learn and appreciate the power of dividends, which bolstered my portfolio as they were credited to my account. And this appreciation has continued through to today. I remain firmly in favor of focusing on stocks that pay you well through good and rising dividend distributions. Why Dividends MatterThis is an important lesson. Dividends continue to be one of the biggest sources of overall total return in the stock market. Take for example the performance of the S&P 500 over the trailing 20 years.The index gained in price by 104%, but with dividends the return swells to 201.4% which is nearly double the price movement alone.Source: Chart from Bloomberg S&P 500 Total Return That's a big premium over just investing for price growth. And those dividends worked to cushion returns during bear markets over those same 20 years. * 9 Asian Stocks to Buy for a Post-Coronavirus Recovery For beginner investors, it's not just about dividends. Investing should also contribute to learning more about the underlying companies behind the stocks. by investing in the right dividend stocks that are in distinct industries and markets, beginner investors will learn more about how business works. * Compass Diversified Holdings (NYSE:CODI) * Hercules Capital (NYSE:HTGC) * Kinder Morgan (NYSE:KMI) * NextEra Energy (NYSE:NEE) * Easterly Government Properties (NYSE:DEA)I've put together a small collection of five stocks that pay dividends that range from close to the average of the S&P 500 to many multiples more. And they are in varied segments ranging from industrial and consumer products, technology, utilities, real estate investment trusts (REITs) and the energy market. Dividend Stocks: Compass Diversified Holdings (CODI)Source: Chart from Bloomberg Compass Diversified Holdings Total ReturnDividend Yield: 9.5%I start with Compass Diversified Holdings. This is a holding company which owns a collection of industrial and consumer products companies which it buys, owns and sometimes sells. And along the way, the company collects lots of cash flows from its underlying companies.In turn, it pays a lion's share of the profits in the form of a big dividend. It currently yields 9.5%.And yes, the stock did selloff in March with the dash for cash. But still -- over the trailing five years with that ample dividend it has returned 34.4% for an average annual equivalent return of 6.1%. Hercules Capital (HTGC)Source: Chart from Bloomberg Hercules Capital Total ReturnDividend Yield: 14.2%Next is Hercules Capital. This is a Silicon Valley-headquartered firm which seeks out new and developing technology companies in its neighborhood and beyond. It works to finance their developments and takes equity participation. Then, Hercules provides guidance in their development, including eventual exit strategies through company sales and initial public offerings (IPOs). It too pays a bigger dividend which currently yields 14.2%.Hercules is viewed as a financial business lender, not an equity investor. But it's involved in promising tech companies, including those in biotech, giving it a particular value. * 9 Robust Stocks to Buy to Survive a Bear Market And despite the fall in price in March, it is still positive in return including that dividend income. Kinder Morgan (KMI)Source: Chart from Bloomberg Kinder Morgan Total ReturnDividend Yield: 7%Then, we move on to the energy market in the reliable dividend-paying segment of oil and gas pipelines. My pick here is Kinder Morgan. Kinder Morgan owns and operates a massive network of pipeline and related oil and gas infrastructure that is crucial to the petroleum industry in the U.S.And while oil prices have plunged with skirmishes between OPEC and its allies, petroleum isn't going away. It's a must-have for the U.S. and global economies. It generates an increasing amount of revenues and profits which in turn it pays a portion of in a dividend yielding 7%.Kinder Morgan's stock got sold off with the general S&P 500 in March, which makes it a particular bargain right now. You can buy the stock right now at a 5% discount to its intrinsic value (book value) which would be very difficult to replicate in its vast pipeline network. NextEra Energy (NEE)Source: Chart from Bloomberg NextEra Energy Total ReturnDividend Yield: 2.4%Next is one of the most impressive of U.S. power utility provides -- NextEra Energy. This company provides regulated power to customers in Florida. And it also provides unregulated wind and solar-generated power throughout North America and beyond.This combination of reliable cash flows from its regulated business and growth from the unregulated business has been generating ample gains in the stock price along with a modest dividend yielding 2.4%. * 7 Bank Stocks to Watch as Earnings Season Heats Up The total return of this defensive utility is impressive over the past five years, running at 159.9% for an average annual equivalent return of 21%. Easterly Government Properties (DEA)Source: Chart from Bloomberg Easterly Government Properties Total ReturnDividend Yield: 3.9%Last up is a favorite REIT that is perhaps the most defensive property landlord in the U.S. market. Easterly Government Properties leases properties to the U.S. government.And while other tenants of REITs are indeed in jeopardy with the current economic lockdowns, the U.S. Department of Treasury will keep cutting rent checks to Easterly. This ensures that the dividends will be paid. And yielding 3.9%, the stock is a good payer in the current market.Easterly is a good and reliable dividend payer. But it has also generated steady gains over the past five years alone with a total return of 109.9% for an average annual equivalent return running at 16%. And it is a good value. The stock is only valued at 1.9 times its underlying book value of all of those dependable government-leased properties.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine … one that can help you collect $208 every day the market's open. Neil does not have any holdings in the securities mentioned above. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 5 Ideal Dividend Stocks for New Investors appeared first on InvestorPlace.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that it has scheduled its first quarter 2020 financial results conference call for Monday, May 4, 2020, at 2:00 p.m. PT (5:00 p.m. ET). Hercules will release its financial results after market close that same day.
Editor's note: This column is part of InvestorPlace.com's Best Stocks for 2020 contest. Neil George's pick for the contest is Hercules Capital (NYSE:HTGC).Don't ever look at any of your owns stocks and think about what you paid for it. If you are up, great. But it doesn't matter, as each day -- or at least each month -- you need to look at that stock and ask yourself: Would you buy it again, and under what price? And if you are down, the same question applies. Also, it is important to not hold a stock, hoping that it will inch up to your buy price so that you can sell it. The hold-and-hope method never ends well.At the start of this year, I joined my colleagues at InvestorPlace as each of us presented one stock to buy and own for all of 2020. My stock was -- and is -- Hercules Capital (NYSE:HTGC).InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's get the elephant in the room out of the way first. For the full first quarter of 2020, HTGC stock has dropped by 45.5% in price. After including dividend distributions, the total return is a net loss of 43.9%.Source: Chart courtesy of Bloomberg Hercules Capital (HTGC) Total Return 1Q 2020That's terrible.But as I led in this report, it doesn't matter what the starting price was -- only what it is right now, which is about $7. And that is a pretty nice price to buy HTGC stock. The underlying company has a whole lot of very valuable assets and lots of cash and credit capability. What Is Hercules Capital?Hercules Capital is an alt-financial company providing finance (along with equity participation) to technology companies in various states of development. Technology is one of the better forward-looking segments now. Tech companies are providing solutions for e-commerce, remote management, and also life science products and services. Many of Hercules Capital's highly diversified portfolio companies should continue to advance -- and then some. * 7 Dividend Stocks at Risk of Slashing Payouts Hercules is structured as an investment company, also known as a business development company. The Investment Company Act of 1940 founded these BDCs, and the Small Business Investment Incentives Act of 1980 further codified them.Both of these bits of U.S. law allow Hercules to largely avoid federal income tax. This perk helps it generate more cash, which it uses to fulfill bigger dividend distributions.Hercules is a venture capital-style company that focuses exclusively on tech firms. It provides loans to fund development and helps coach companies through their IPOs. And since its founding in 2003, it has successfully worked with nearly 500 companies. Hercules has brought billions of dollars of value to the markets.Unlike many other BDCs, it does not participate in collateralized loan obligations (CLOs), not is it involved in mortgage loans or mortgage-backed securities (MBS). This limits its risk and provides more transparency to HTGC's shareholders. Hercules Capital's Impressive PortfolioHercules breaks down its numerous portfolio companies into four primary groups. The first is life sciences, which includes drug and therapeutic companies. Then there's general technology, which includes numerous class-leading companies in various businesses. Third is sustainable and renewable energy, and fourth is special opportunity companies.It currently states that its life sciences companies make up half of its current portfolio. The full list of the current portfolio can be found here. And the rest of its portfolio spans many different technologies.Hercules has plenty of bold-faced names that it has worked with over the years. It currently assists FanDuel in the increasingly popular sports gaming market. It has BrightSource Energy in its renewables unit, along with American Superconductor (NASDAQ:AMSC).And Hercules also stands to benefit from the current remote work surge. It has DocuSign (NASDAQ:DOCU) and Evernote, which specializes in cloud document management. It also has innovative food brands including Annie's and Impossible Foods. For those seeking family information, it has 23andMe and Ancestry.com. Hercules truly has something for everyone.It's important to note that the financing isn't just about making loans to these companies. Hercules also gets equity stakes as part of each transaction, which provides it with gains along the way.And Hercules doesn't just sit around waiting for the phone to ring for opportunity. Instead, it is based in the tech mecca of Palo Alto, California. It knows everybody in technology. And it also has strategic offices around the U.S. to help it reach other customers and financial partners.One office I like is its very special team inside the Washington beltway. The U.S. government provides plenty of opportunities for tech companies, and Hercules works to make things happen for its clients.And all of the above comes with $7 HTGC stock. How Is the Lockdown Impacting HTGC Stock?But what is the status of the company while the U.S. economy is in lockdown? For me, status means how the company is going to get through the mess, and how it will perform moving forward. This includes its employees, which are now working remotely. And it also includes it suppliers, which I will get to in a moment. Lastly, it includes its customers, which are the current and future companies it invests in.Here I see that tech is becoming one of the value-focused and dependable parts of the stock market during lockdown. Technology is bringing solutions for everything from healthcare to remote work. And that trend won't stop anytime soon.Now, let's look at the credit status of the company. Its debts are manageable at 52.9% of its assets.And Hercules Capital has a revolving credit line with MUFG Union Bank for working capital that will mature on May 5. It also has a smaller loan maturing in 2022 with another major line of credit. It has placed two mini bonds (bonds that trade like preferred shares) with maturities in 2025 and 2033.Hercules also has cash and cash equivalents amounting to $64 million. The company recently announced that, with various loan payments and pre-payments, it will have $350 million in liquid assets for its first quarter.In addition, it placed additional shares last year for $62.7 million, and some in 2018 for $63.3 million. These two offerings were part of the company's at-the-money capital program of 12 million shares. It has another placement of additional capital which is set to close in June for an additional $70 million.For now, after reviewing its status, I think Hercules Capital and HTGC stock are in pretty good condition. The Bottom Line on HTGC StockHercules distributes dividends both in regular amounts (currently 32 cents per share) and in a special distribution through the year. It paid one of those special distributions of 8 cents on March 9. That brings the annual dividend to a whopping 20.2%. Remember, HTGC stock trades below $7.Under generally accepted accounting principles (GAAP), the cash available for shareholders was $44.6 million and total dividend distributions came in just under $37 million. And its reported retention rate for earnings is at 22.7%. Of course, both of these details are backward-looking, but they give you an idea of its coverage and reinvested capital.And, as Hercules is reporting expectations for heavier cash and liquid assets, the dividend may well remain. Granted, a lot is going on in the economy. But the company survived credit-threatening times before, including the 2007-08 financial crisis, so it has proven its chops.Another thing I like is that its management team, board of directors and other insiders own 4.7% of the company's overall shares. Management has skin in the game with HTGC stock.Source: Chart courtesy of Bloomberg Hercules Capital Book Value Per ShareHTGC stock is now below $7, so it is valued at a discount of 30% of the company's $10.55 book value. This makes it a bit of a bargain right now.I have the shares as a buy ideally in a taxable account under $9.60.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine … one that can help you collect $208 every day the market's open. Neil does not have any holdings in the securities mentioned above. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Best Stocks for 2020: Hercules Capital Stock Is a Steal for $7 appeared first on InvestorPlace.
The team at Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company") is working collectively with our employees, shareholders, stakeholders, bondholders, rating agencies, portfolio companies, and our venture capital and private equity sponsors to navigate the significant challenges created by the unprecedented COVID-19 (Coronavirus) pandemic. We are vigilantly monitoring this evolving situation and have implemented actions to keep our employees safe while also managing the continuity of our business. Our thoughts and prayers are with everyone who has been impacted by these events.
Over the past months I've been researching companies that I call tails-you-win, heads-you-win opportunities. These are companies in businesses that profit during good economic times and -- more importantly -- during terrible economic times. In general, these are great stocks to buy.Source: Shutterstock And now that the United States is about a month into this coronavirus from China mess, the terrible times are here for a bit.Every day I've been getting more emails from retail and other brick-and-mortar businesses letting me know that they are closing their stores in light of the Covid-19 outbreak. This means that all of those dark stores are now generating nothing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnfortunately, these empty stores will be a further strain on their underlying companies. It was bad enough to be a brick-and-mortar business without a global pandemic. * 10 of the Best Long-Term Stocks to Buy in a Bear Market Because just as Walmart (NYSE:WMT) changed the retailer landscape from local shops to the big-box stores built by Sam Walton, Amazon (NASDAQ:AMZN) has been transforming the landscape even more so -- I'm talking colossal-scale changes. An E-Commerce TakeoverIn the U.S. and well-beyond, shopping online increasingly is taking the place of visiting retail locations. And even Amazon is being impacted by its own online presence in groceries as its delivery service is taking the hassle of visiting a Whole Foods out of the process.The result is that retail stores are closing.From major malls to strip malls and from main and high streets -- stores are now vacant. In 2019, companies announced the closing of 9,300 stores surpassing the record in 2017 of 8,000 closures. And so far in the opening weeks of 2020, 1,900 stores are set to close.And this is just the start. Real estate behemoth, Cushman & Wakefield (NYSE:CWK), is projecting that store closures will exceed 12,000 for full-year 2020, making the year a bad record for retailers.This includes announced plans by Pier 1 Imports to close 450 stores, Gap (NYSE:GPS) to close 230 stores and Chico's (NYSE:CHS) to close 200 stores. We also learned Forever 21 isn't forever -- as it announced the closing of 200 stores. And Walgreens Boots Alliance (NASDAQ:WBA) is also closing 200 stores this year.But there is an upside. Closing DealsCompanies have to deal with each and every closing store. Think of the inventories, the fixtures, the real estate and all of the local liabilities.There's one company that's a leader in this space -- Great American Group.Since 2013, Great American Group has closed over 6,800 stores. That amounts to over $13 billion in assets. More importantly, the company is set to explode in 2020 as the closing market is showing no signs of stopping. Great American estimates that 30% of traditional retailers could close down in the not-too-distant future.The timeline for those closings is only going to speed up, thanks to Covid-19.So how exactly did I come across this "great" company? Well, I have been researching the realities of the retail apocalypse -- who handles store closings and disposing of the facilities? In the process, I tracked down the firm contracted to take care of the stores.You guessed it. That firm was Great American Group. But my search didn't stop there -- Great American merged into a company I find even more interesting. My Top Retail Play Now: RILY StockThat company is B. Riley Financial (NASDAQ:RILY). CEO Bryant Riley is the founder and largest shareholder, owning 27.3% of its shares. And he just added to his pile on recent drops. This company is a great place to start when looking for retail plays, as I like management that has skin in the game.So what exactly does B. Riley do? It's a financial firm that operates like a big umbrella, providing the structural underpinnings for six core businesses, and these core businesses are all the results of mergers and acquisitions. As I discussed above, it owns Great American Group. But it also acquired FBR, a specialized investment bank. I am familiar with the name through my days in the banking world.I also happen to like another of its core businesses quite a bit. B. Riley Principal Investments acts much like my alt-financials, such as Hercules Capital (NYSE:HTGC) and TPG Specialty Lending (NYSE:TSLX). Both of those stocks are in one of my Profitable Investing model portfolios.Its Principal Investments makes loans and takes equity stakes in a variety of companies, and it's inching out traditional commercial banks. This business works with B. Riley Capital Management in loan origination as well as other direct asset acquisitions.And in turn, B. Riley Wealth Management utilizes the strengths of FBR to provide asset management, primarily to private clients and family offices. It currently has more than $10 billion in assets under management (AUM).Lastly, there's GlassRatner, which dovetails nicely with Great American. GlassRatner specializes in helping failed or failing businesses with restructuring and bankruptcies. It also provides asset valuation, legal counseling and accounting services. B. Riley and the Retail ApocalypseNow, valuation, auctioning and liquidation make up a reported 31% of B. Riley's segmented income. Its Capital Markets and Principal Investment businesses make up the majority of its segmented income.So, while it is not a pure play on store closings, its other businesses have additional appeal and increase my interest as an investor in RILY stock.Source: Chart by Bloomberg Investors Still Believe in B. Riley (Stock Price) The shares have generated a gain of 47.3% over the trailing five years. And when you factor in the stock market rout and dividends, RILY stock has a total return of 82.6%. Both of these measures amply outperform the general S&P 500.And now it is a very cheap stock. Shares are valued at a discount to its trailing revenues, and that revenue has been advancing by 54.2% over the past year.B. Riley's operating margin is huge for an alt-financial, running at 30.5%. This figure in turn boosts the return on shareholders' equity, which comes in at 26.3%.And while other public companies are currently in limbo, it's a pretty easy bet that there will be a lot more store closings this year in the wake of Covid-19.Meanwhile, the stock trades at a price-book value of 1.3 times, making it a value stock.It's also important to note that B. Riley operates with less regulatory oversight than a traditional bank, which is an additional bonus as it builds up its assets. The company's underlying book value has gained almost 17% per year over the trailing five years on a compounded annual growth rate (CAGR) basis).And as I noted earlier, the CEO just piled on more stock with his additional purchases in the past week.Lastly, it has a tremendous amount of cash and equivalents on hand, but management likes leverage to drive returns higher. As such, its debts-assets ratio is higher at 73.1%. This high figure gives me some pause, but provided the company works in both contracting and expanding markets, there are internal business hedges that make it more appealing. The Bottom Line on RILY StockOne final thing I always do is run a credit analysis on companies that I recommend in my Profitable Investing. And with the fallout from the coronavirus, I have been digging again into the debts of each of my holdings.B. Riley's loans are primarily due for rollovers in 2023. And credit lines are amply available. Its current credit crunch isn't much of an issue for the company, especially as it also uses preferred shares for funding. Those preferred shares have call dates that extend out much further.I also want to note that RILY stock has a history of both regular and special dividends, which give it an annual yield of 10.1%. Its distributions have been climbing by 125.8% on average over the trailing five years.I am recommending it as a "buy" as it is a current bargain. RILY stock is a great way to capitalize on what's wrong in the markets and what will eventually go right. Buy it now in a tax-free account.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine … one that can help you collect $208 every day the market's open. Neil does not have any holdings in the securities mentioned above. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 of the Best Long-Term Stocks to Buy in a Bear Market * 7 "Perfect 10" Healthcare Stocks to Buy Now * Where the FANG Stocks Sit in This Wild Market The post B. Riley Is the Top Company Cashing in on the Retail Apocalypse appeared first on InvestorPlace.
Syndax Pharmaceuticals, Inc. ("Syndax," the "Company" or "we") (Nasdaq:SNDX), a clinical stage biopharmaceutical company developing an innovative pipeline of cancer therapies, today reported its financial results for the fourth quarter ended December 31, 2019. In addition, the Company provided a clinical and business update. As of December 31, 2019, Syndax had $59.8 million in cash, cash equivalents and short-term investments.
The broad market indices are going down. But that doesn't mean the entire market is headed down with them.First, it pays to remember in times like these, that the big indices are price weighted. That means the higher the price of the stock, the more it affects the movement of the index.Sometimes, one high-priced Dow Jones Industrial Average stock can drive the entire index down. Or up.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's why looking at the indices is helpful, like looking out the window to check the weather. It's a snapshot.But if you want winners, you have to dig deeper. And when the markets are down like they are now, if you can find the right stocks it's a great time to grab them. They're stocks that will perform if things get worse, or when they get better. * 10 Stocks to Buy for Your 10-Year-Old The seven ideal stocks to buy for cautious investors are all A-rated by my Portfolio Grader tool I use to find Growth Investor plays -- even now. Stocks to Buy: B Riley Financial (RILY)Source: Pavel Kapysh / Shutterstock.com B Riley Financial (NASDAQ:RILY) is an interesting company because it is built to take advantage of both good and bad markets.It has a few divisions and they are either interconnected or operate siloed. One piece provides private equity to small- and midsize-firms in the U.S. market. The second provides auction and liquidation services to companies. And the third is a valuation and appraisal unit that larger financial institutions can hire to figure out the value of properties they are interested in buying or shutting down.For example, a retailer may want to expand from its one store to a handful of stores in various states. RILY funds them. Then, say that the U.S.-China trade war was hurting the retailer's sales.RILY would step in with its valuation unit and look for ways to sort out the issue. If it can't find a viable path forward, it would arrange to wind the business down and auction off the goods and properties.Each division has specific upside in both good and bad markets. And it was built via acquisitions precisely for this purpose.The stock is up 37% in the past 12 months and offers a 2.9% dividend. It should stay plenty busy moving forward. Hercules Capital (HTGC)Source: Shutterstock Hercules Capital (NYSE:HTGC) is a company similar to RILY in that it offers private equity to firms. The difference is that Hercules focuses on tech, life sciences and renewable energy companies.It's an alternative financial company, meaning it will fund projects that may not meet the criteria traditional banks would have for lending. Many of these firms popped up after the financial crisis in 2008, but HTGC has been around since 2003, funding Silicon Valley startups in the wake of the burst tech bubble.It now has a $1.6 billion market capitalization and strong reputation in the industry. Unlike RILY, HTGC's sole focus is as an alt-lender. But this is a growing sector, since these firms don't have all the regulation that traditional financial institutions have.That means they can create better deals and have more wiggle room on terms, which is a very attractive option for young firms. And those new startups are popping up left and right. Going forward, they'll be fueled by a huge technological innovation whose name you've probably heard -- but not its magnitude.The stock has a huge dividend, currently paying 8.8%. Blackstone Mortgage Trust (BXMT)Source: Isabelle OHara / Shutterstock.com Blackstone Mortgage Trust (NYSE:BXMT) is set up as a real estate investment trust (REIT), but it doesn't own properties. It originates the senior debt on commercial properties. From those deals it generates net income that it pays to investors as dividends.REITs were on a tear until late in 2019, but now picking them is more selective. And BXMT is one that still has strong potential moving forward.This isn't about speculating on real estate values, it's about buying into an expanding economy.While the coronavirus from China may slow growth for a quarter or two, the fact is, the U.S. economy is still the strongest in the world. And that means other countries are buying into solid stocks that are built for the long term. That's BXMT.The stock is up 5% in the past 12 months, but it also has a reliable 6.7% dividend on top of that performance. Ball (BLL)Source: Jonathan Weiss / Shutterstock.com Ball (NYSE:BLL) has been around since 1880. While you might think that the company makes Ball jars, that's no longer the case.It has licensed its name and that particular product line for decades.Ironically, it now makes cans. And it has for many, many years. It also has an aerospace division.As for the can business, think about walking the aisles of your grocery store. There are a lot of cans there. And they're not going away. This chunk of business may not be a massive growth engine, but it's a solid revenue generator. And it's a global leader. Almost all the cans in Brazil are made by Ball.During World War II Ball thought it might be a good idea to diversify its business lines and got involved in the war effort, especially in its aftermath when the Cold War ramped up.Ball is now a significant player in the expanding C4ISR mission of the military.The stock is up 26% in the past year and has a 0.8% dividend. And I've got more where that came from. Hershey (HSY)Source: George Sheldon / Shutterstock.com Hershey (NYSE:HSY) should be a recognizable name to anyone who has lived in the U.S. for the past decade or more. It is one of the leading confectioners in the U.S. and around the world.But it's more than Hershey's chocolate, Reese's, Kit Kats and Twizzlers. It has also branched out to healthier alternatives as well. It now owns SkinnyPop and Pirate's Booty among its other 80 brands.The company has been around since 1894 and is still headquartered just outside of Harrisburg, Pennsylvania, in -- of course -- Hershey, Pennsylvania. It has an amusement park there as well. And given its central location in the Mid-Atlantic and Northeast, it has a constant flow of soccer, lacrosse and other sporting tournaments going all year long.HSY stock has a $31 billion market cap, so it's not a little confectioner. This is a major company but it has a strong social conscience and prefers to be responsible about its growth and sustainable as a corporation.The stock is up 30% in the past year and it offers a dividend just a hair over 2%. L3Harris (LHX)Source: Jonathan Weiss / Shutterstock.com L3Harris (NYSE:LHX) is a newly merged company that combines two of the United States' top companies that are focused on defense and aerospace technologies.They both have decades of experience when it comes to everything from secure handheld telecoms equipment to satellite and cyber defense tech.As the world looks to space for its next-level opportunities, it's companies like LHX that will be go-to partners with not only governments, but also private companies that are now in the Space Race. This industry is going to grow significantly in the coming decade.By combining, LHX has become a major player in this sector and it can now garner much more work than it did when both competed against each other or each won a piece of the same contracts.It now sports a $45 billion market cap and is a major player in its own right. The stock is up 21% in the past 12 months and it has a 1.5% dividend. While LHX is a more unique telecom company, everyone in that industry has a fire lit under them by the latest tech breakthrough powering ultrafast wireless speeds -- and great investments now. Zoetis (ZTS)Source: JHVEPhoto / Shutterstock.com Zoetis (NYSE:ZTS) has been around since 1952 and it specializes in making animal health medicines and vaccines.Before this coronavirus hit, the big story was the African swine fever that was running wild in China, killing more than half its pigs. It is so virulent that any pig that tests positive is slaughtered.This sent pork prices sky high in China and it was having a real effect on the economy, slowing growth and raising inflation.Although the story has changed from ASF, it's still a real issue. And many similar diseases are out there. ZTS has been working on an ASF vaccine for over a year now, so you can imagine the potential.We see what happens to biotech stocks when they announce they may have a vaccine for the coronavirus, which most reports say kills less than 3% of those who contract it.Viruses are productivity issues and that makes them economic issues. ZTS may be a new name to you, but it has a $64 billion market cap. That goes to show that institutional investors know how important its business is.The stock is up 40% in the past year and has a small, 0.7% dividend.Soon, however, "cautious" investing won't be the buzzword. Bullish trends are about to come back into play, both economic and logistical, like fund managers performing end-of-quarter "window dressing" -- so don't be surprised to see everyone jump back on the bandwagon of growth investing. Those of us in the know can lay our own groundwork now -- and here's a great place to start: The 5G Buildout Is an Incredible Opportunity for Investors Right NowWithin two years, most cell phones will be 5G enabled and be able to wirelessly handle television streaming. With 5G, we'll have cable modem speeds on any device; no need to plug in. That's a big deal for rural areas … the very same areas that are also key to President Donald Trump's reelection. So, by pushing 5G over the goal line, Trump will deliver a big win for his base -- and strike a blow against Chinese rivals like Huawei Technologies.But, in the big picture, 5G is about much more than trade wars and faster downloads. Because 5G is 100 times faster than 4G, it'll allow your internet devices to work in real time. That advancement is a game changer for tech companies.With the 5G infrastructure market set to grow at an annual rate of 67% over the next 10 years, the entire market will go from $780 million to nearly $48 billion. This buildout is where I see opportunity with 5G stocks now.Cable companies can do their best to fight back with fiber optics … but they can't compete with the convenience of a smartphone, once it's got ultra-fast 5G. That's how my 5G infrastructure play will capture more market share from the broadband cable companies.The stock I'm targeting is enjoying an influx of big money on Wall Street, and it has strong fundamentals, too -- making it an A-rated "Strong Buy" in my Portfolio Grader system.Click here to watch my new, free briefing on this extraordinary technology and the opportunity with 5G stocks.When you do, you'll see how to claim a free copy of my new investment report, The Netflix of 5G, which has full details on this company -- and what makes it such a great buy now.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In one recent feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Your 10-Year-Old * 5 Hot Cannabis Stocks to Snap Up * Buy These 5 Super Fast-Growth Dividend Stocks While They Are Down The post 7 Ideal Stocks to Buy for Cautious Investors appeared first on InvestorPlace.