S&P 500: 1,317.11 Change: -0.21%

MightyMo

P&P Score: 99.87 Points: 395.20 Accuracy: 62.49% Average Pick Score: 1.26 Annual Return: 13.80% (60.67% since 1/3/08)

MightyMo's Blog : MO tidbits: FSC

June 16, 2011 Edited: June 16, 2011

Comments (2) Rate this post

Recommend This Post (47) Abuse this post

Report Abuse

Share This

Insiders going hog wild buying up stock in FSC.

FSC is a business development company (bdc). They loan out money to small and mid-side companies and sometimes take a venture capital position in those companies. FSC money comes partly from money from its licenses from the small business administration (sba) in which the money is guaranteed and protected. FSC loans these out to other companies. bdc's need to pay out 90% of income as dividends to shareholders. FSC is paying over 10% currently and is considered one of the best managed bdc's.

FSC is an excellent buy anywhere below 12.35. It is currently in the 11.74 - 11.95 range. It closed yesterday at 11.74.

Tags : FSC

2 Comment(s):

rjm77me

June 16, 2011 12:07 Abuse this post

Report Abuse

Mo,
I agree with insiders buying for last two years. Looks like Institution were net sellers.
The yield looks like is not sustainable - if the data on yahoo web site is correct - yield is 188% or 1.88 times the income
Net Shares Purchased
(Sold) (4,551,590)
% Change in Institutional Shares Held (12.18%)

I will still add to buy watch list.
Will love to get any more info you have,
Regards,
rjm

MightyMo

June 16, 2011 23:43 Abuse this post

Report Abuse

Payout ratio is not good but offset by insider buying. Insiders should know if they have cash available to pay dividends. Also note that all recent insider buying is not reflected on the yahoo site.

Want to comment on this post? Sign up now. It's FREE!
Already registered? Log In.

Sponsored Links

Ride Momentum Stocks to Quick Gains!
The market is finally breaking out, creating the perfectd wave for investing in momentum stocks. Zacks is the king of fundamental analysis, but this service also uses technical indicators for the best possible timing. Click here to learn more >>.

No Stocks are Harder to Find, or More Worth the Effort.
They have the greatest potential for quick gains, but they're also the most difficult to find and time correctly. Now Zacks has perfected a system for identifying and profiting from turnaround stocks just as they begin a powerful rebound. Learn more here >>.

Make Big Bucks promoting Zacks products on your website! Click here to Learn about Zacks' Affiliate program.

Stock screening and chart patterns expert, Kevin Matras, combs through the best Zacks stock-picking strategies averaging +60% yearly gains to find stocks with charts showing they are ready to skyrocket. Chart Patterns Trader >>