Summary
- Gladstone Investment Corp.'s shares have dropped off from their latest 52-week high.
- However, shares are not yet attractively valued.
- I'd wait for a drop below $10 to consider adding GAIN for a short-term investment.
- Shares are priced at a 9 percent discount to NAV.
- An investment in GAIN yields 7.3 percent.
Gladstone Investment Corp. (GAIN)'s shares have retreated from their 52-week highs lately, but the current price level does not yet represent a favorable entry point into the stock, in my opinion. Gladstone Investment Corp. has above-average market risk due to its large percentage of equity investments in its portfolio, and dividend coverage stats are not as good as stats from other business development companies in the sector. Shares currently sell for 0.91x net asset value, indicating that the margin of safety is not yet as large as I would like it to be.
Gladstone Investment Corp.'s shares have rebounded in the first six months of the year in lockstep with the larger stock market. GAIN has dropped off on profit taking lately, but the stock is still up 21.6 year-to-date.
Nice rebound.
Source: StockCharts
