Oil-Exposed BDCs Continue To Rally

Article Follow-Up:

As discussed in “9.4% Dividend Yield Supported By Rising Rates And Growing Book Value“, Gladstone Capital’s (GLAD) book value and earnings per share continue to improve due to higher oil prices and LIBOR as well as accretive share issuances:

As shown below, GLAD’s stock price has rallied by over 8% since the previous article linked above:

Oil prices have rallied over the last 10 quarters:

As discussed last week in “9.3% Yield And Recent Rally From Rising Book Value“, PennantPark Investment’s (PNNT) stock price has increased 15% since the previous article predicting that the company would report increased net asset value (“NAV”) per share due to rebounding oil prices and accretive share repurchases.

Apollo Investment (AINV) has come off of its recent highs and currently has a relative strength index (“RSI”) of 38 indicating that it is approaching ‘oversold’ conditions partially due to betting against higher oil prices as predicted in “11% Yielding BDC With Oil Hedges Driving Lower Book Value?“.

 

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