Technicalspeculator.com’s Trade-of-the-Week: Apollo Investment Corp. (AINV)

By Tech_Spec Forbidden
6-July-2019 5:14:15 PM
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This week’s trade comes from the financial sector, specialty finance industry of NASDAQ.  One of the standout features of this stock is the monster dividend yield (11.30%) and the low P/E multiple.  Enjoy.

Company profile: Apollo Investment Corporation is a business development company specializing in middle market companies. It provides direct equity capital, mezzanine and senior secured loans, unsecured debt, and subordinated debt and loans. It also seeks to invest in PIPES transactions. The fund may also invest in securities of public companies that are thinly traded and may acquire investments in the secondary market and structured products. It prefers to invest in warrants, makes equity co-investments, and may also invest in cash equivalents, U.S. government securities, high-quality debt investments that mature in one year or less, high-yield bonds, distressed debt, non-U.S. investments, or securities of public companies that are not thinly traded. It also focuses on other investments such as collateralized loan obligations and credit-linked notes. The fund typically invests in building materials, business services, cable television, chemicals, consumer products, direct marketing, distribution, energy and utilities, financial services, healthcare, manufacturing, media, publishing, retail and transportation. It primarily invests between $20 million and $250 million in its portfolio companies. The fund seeks to make investments with stated maturities of five to 10 years.

 

Fundamentals:

Trailing P/E: 15.82, Forward P/E: 8.61

EPS: 1.02, PEG: 3.00

P/S: 4.23, P/B: 0.84

Profit margin: 28.21%, Operating margin: 72.95%

ROA: 4.84%, ROE: 5.27%

Qrtly earnings growth: 54.40%

Dividend yield: 11.30%

Current ratio: 1.41

Additional fundamental data: https://finance.yahoo.com/quote/AINV?p=AINV

Technicals:

Recently broke out of a 25 month consolidation

New 52 week high, New all-time high

Buying momentum (RSI) is positive and rising, Buying volume is neutral

1st support level is at $15.30

Safety stop is at $15.05

The target is $18.40

Suggested buying approach: Buy the security at this price level. Should AINV pull back, as long as the stock is above the stop loss, wait for confirmation of support and then add to the position. Always use a 3% trailing stop.

For more trading ideas, sign-up for a free account at www.technicalspeculator.com – do it today!

 

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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