There are many reasons why value investing has been one of the most popular investment strategies. One of those reasons that’s of particular importance today is the idea of “margin of safety.” By purchasing equities at prices lower than their intrinsic value, an investor allows some room for error in the value estimation process. And indeed, with the S&P 500 Index, the NASDAQ Composite, and the Dow Jones Industrial Average all surpassing their all-time highs, who can be 100% sure that the current valuations are justified? That’s why today, I’m going to show you a stock that trades at a significant discount. And the yield is pretty handsome, too.
The stock in question is Pennant Park Investment Corp. (NASDAQ:PNNT), a business development company based in New York City. Pennant Park focuses on investing in middle-market private businesses in the U.S. The investments can take the form of secured loans, mezzanine debt, and equity. According to Pennant Park’s latest earnings report, the company has a net asset value (NAV) of $9.10 per share. However, note that PNNT stock trades at just $6.91 apiece. So if the company’s portfolio hasn’t deteriorated much since that report, its current share price would represent a more than 20% discount from its NAV.
Source: Income Investors
Related Articles:
- Hey, You Invest Like a Girl!
- Are Storm Clouds Gathering For These 4 High-Yielding Securities?
- Weekly Links: May 13, 2017
- 5 Dividend Stocks With A Low P/B Ratio
- Harvest the Fruit
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Investors looking for the best dividend stocks for 2021 and beyond should take a closer look at the stocks with the longest histories of ann...
-
Some investors — usually referred to as income investors — specifically set out to buy securities that pay them even before stock price appr...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Dividend stocks are very appealing to investors, for good reason. Growth stocks tend to make the headlines — with the 2020 pandemic, shareho...
-
Are you looking for a great dividend stock to add to your portfolio? There are many options out there, but the reality is that many just don...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.