Tuesday, March 6, 2012

Micro Cap Public Company Capital Groups with High Yield

In a volatile market like today, micro cap companies are among the biggest movers.  But are there any micro cap companies that yield???  Yes, there are plenty and currently the capital groups in the micro cap sector are among the highest yielders.

Disclaimer: We do not own a position in any of the stocks mentioned at the time of this writing.  Our stock positions are disclosed on our disclaimer page.

FULLFull Circle Capital Corp7.2044.78M0.7512.82
SUNSSolar Senior Capital Ltd16.66158.27M0.557.08
KCAPKohlberg Capital Corp.7.05161.35M0.6610.13
GAINGladstone Investment C...7.59167.59M0.487.65
KEDKayne Anderson Energy ...23.91247.29M1.376.49
TICCTICC Capital Corp.9.71317.96M0.8110.08
PNNTPennantPark Investment...10.81593.00M1.079.98

The column all the way to the right is the dividend yield of each company while the numbers with the letter M next to it is the market cap of the companies.   Although these capital groups differ in the services they offer, all are in the realm of banking and investing.  For example, GAIN, whoms parent also operate two other publicly held companies operates as a closed-end, non-diversified management investment company. The Company was established for the purpose of investing in subordinated loans, mezzanine debt, preferred stock and warrants to purchase common stock of small and medium-sized companies in connection with buyouts and other recapitalizations. The Company also invests in senior secured loans, common stock and, to a much lesser extent, senior and subordinated syndicated loans. Its investment objective is to generate both current income and capital gains through these debt and equity instruments. In September 2011, the Company acquired SBS Industries, Inc.

Another company, Kohlberg, operates similar. Kohlberg Capital Corp. is an internally managed, non-diversified closed-end investment company that operates as a business development company. The Company originates, structures and invests in senior secured term loans, mezzanine debt and selected equity securities in privately held middle market companies. Its investment objective is to generate current income and capital appreciation from its investments. It defines the middle market as comprising companies with earnings before interest, taxes, depreciation and amortization of $10 million to $50 million and/or total debt of $25 million to $150 million. The Company also has a wholly owned portfolio company, Katonah Debt Advisors and its affiliates (collectively, Katonah Debt Advisors), manage collateralized loan obligation funds (CLO Funds) that invest in syndicated loans, high-yield bonds and other corporate credit instruments. In February 2012, the Company acquired Trimaran Advisors, L.L.C. (Trimaran Advisors).

While we have just recapped GAIN and KCAP, other high yielding capital groups in the micro cap sector give higher returns.  Please remember that micro cap stocks are very risky and only professional traders should invest after reading and inspecting company prospectus and financials.  Safe Investing.


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About the Author: Nicholas Coriano is a Business Consultant and Planning Guru.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and as an Investor Relations Agent & Consultant to Micro Cap Companies and Penny Stocks.  He is the founder and author of The MicroCapCompany.com a blog focused on providing information and advice to Micro Cap Company Executives and Investors.  You can also find him blogging about Social Media, SEO, Web Development and Tech on PushYourRank.com

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations (a micro cap investor relations firm) and offers compensated research reports and business plan writing services for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email CervitudeNetwork@gmail.com, If you would like to advertise on The Blog, click here


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  5. It's really nice to see how well GAIN has pulled itself together lately, with a solid move off of the lows from about a month ago. As you said, this is pretty high yield, for a company on the OTC, so it will be pretty interesting to see how it continues to play out. I've been working my own little blog, over at Penny Stock Dream, where I do a lot of reporting on small micro-caps with high potential for growth and after seeing your write-up and it bringing my attention to GAIN, I'll definitely have to look further into it. Seems like it could be a great candidate to bring to the attention of readers :)