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.
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
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.
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