Screener.co submits:
An interesting strategy for trading in BDCs is to identify firms whose market capitalizations are substantially less than the mark-to-market value of the company’s investments. One of my most profitable trades was buying American Capital ( ACAS ) at the height of the financial crisis, when its shares were trading at a relatively small fraction of its Net Asset Value. While that specific company was highly leveraged and trading at a discount because it was at risk of defaulting on its loans, it is possible that there are other similar firms that are trading at less substantial discounts but also have less of a risk of loss. We can use the Screener.co stock screener to find investment firms that are trading for less than their net asset value. We can use the following conditions: Field op Criteria RBSS Classification = “Investment Trusts” Market Capitalization / Net Tangible Assets( I ) > 0 Long Term Complete Story ยป
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