Summary
Shares are attractively priced at these levels, trading hands for just 0.78x BV.
Total dividend yield (including declared supplementary dividends) is now 9.8%, which is very competitive with MAIN and makes up for the lower safety and less diversification.
Q3 earnings were not as bad as they looked, with unrealized gains more than offsetting realized losses.
NAV of $12.30 represents a 13.3% QoQ improvement, up from $10.85 in Q1 and up 21.7% YoY from $10.10.
Recent broader market declines during the past few months and a confusing earnings report have dragged down shares of Gladstone Investment (GAIN) to oversold levels. Shares are trading more than 20% lower than they were just 3 months ago, despite book value increasing 13.3% in that same time frame. The underlying financial metrics remain solid, and an increase in dividend sweetens this already attractive-looking investment. For the aforementioned reasons, we are buyers at these levels.
Achilles Research recently penned an article about GAIN on October 28th, so I will highlight some of the points that were not made in that article. In addition, Q3 earnings were released on November 5th so I will quickly cover what I see as the main takeaways from that report.
Image from finviz.com
