TPVG: 11.7% Yield Positioned For Rising Rates And Ready To Rally

Summary

  • I am expecting a rally for TPVG’s stock price as well as higher earnings for TPVG over the coming quarters for the reasons discussed in this article.
  • On June 21, shareholders will vote on the proposal to immediately become subject to a minimum asset coverage ratio of at least 150%, permitting the company to double its leverage.
  • BDCs will begin reporting calendar Q2 2018 results in less than two months and I’m expecting TPVG to beat projected EPS and easily cover its dividend.
  • I recently purchased shares of TPVG as it was below my ST target price. Also, I use the BDC Google Sheets to identify when stocks are “oversold” with an RSI near 30 (TPVG is currently approaching).

You can read the full article at the following link:

Current BDC Yields:

Business development companies (“BDCs”) were pulling back (since May 2017) and as mentioned in “BDC Buzz Begins Purchases Of Higher Quality BDCs,” I have been buying additional shares of higher-quality BDCs, especially given the oversold conditions driving higher yields. As shown below, TriplePoint Venture Growth (TPVG) currently has a much higher yield than the average BDC:

As shown in the following chart, I recently purchased shares of TPVG as it was below my short-term target price. Also, I use the BDC Google Sheets to identify when stocks are “oversold” with a Relative Strength Index or RSI near 30 which it is currently approaching:

This information discussing TPVG was previously made available to subscribers of Premium Reports, along with real-time changes to my personal BDC positions, target prices and buying points, updated rankings and risk profile, any changes to dividend coverage and worst-case scenarios, suggested BDC portfolio as well as timing of Upcoming Public BDC Articles.

 

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