Top 5 High Tech Companies To Own In Right Now

Top 5 High Tech Companies To Own In Right Now: Prospect Capital Corporation(PSEC)

Prospect Capital Corporation is a mezzanine finance and private equity firm that specializes in late venture, middle market, mature, mezzanine, buyouts, recapitalizations, growth capital, development, and bridge transactions. It makes secured debt and equity investments. The firm typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. The firm prefers to invest in the United States and Canada. It seeks to invest between $5 million to $50 million in companies with EBITDA between $$ million and $75 million, sales value up to $500 million, and enterprise value of up to $250 million. The firm also co- invests for larger deals. It seeks control acquisitions by providing multiple levels of the capital structure. Prospect Capital Corporation was founded in 1988 and is based in New York, New York.

Advisors' Opinion:

• [By Charles Sizemore]

  A high dividend yield, large-scale buying by company insiders, and recent buying by funds controlled by Joel Greenblatt (Trades, Portfolio) and George Soros (Trades, Portfolio).Sound interesting? Then I suggest you take a look at shares of Prospect Capital Corporation (PSEC), a business development company ("BDC") traded on the Nasdaq.If you're unfamiliar with BDCs, you can think of them as publically-traded private equity firms. BDCs provide financing to small and middle-market companies that are too early in their development to get funding from more traditional sources, s! uch as the bond and equity markets. It's a high-risk but potentially very high-return financing niche.Similar to REITs, BDCs pay no taxes at the company level on the condition that they distribute at least 90% of their income to their investors via dividends. This makes BDCs some of the highest-yielding investments on the market, but—as is the case with REITs and MLPs—their inability to ret ain earnings for future growth also means that they regularly have to issue new shares, which dilutes current shareholders. That's notnecessarily a bad thing if new investments are accretive to earnings. But it means that management has to be extremely disciplined.Let's dig into the details of Prospect Capital. PSEC invests primarily in first-lien and second-lien senior loans and mezzanine debt and provides financing for leveraged buyouts, acquisitions, recapitalizations, and capital expenditures for growth. PSEC also invests in the higher-risk but potentially much higher-return equity tranches of collateralized loan obligations. Most of PSEC's individual investments would have to be considered risky given the early stages of the companies involved, but the portfolio is diversified across a wide variety of industries.PSEC pays an absolutely massive dividend, sporting a current dividend yield of 13.7%. Now, normally, that would make me pause. An exceptionally high yield is often a major red

• [By Jordan Wathen]

  Tough questions followed Prospect Capital  (NASDAQ: PSEC  ) into Monday's conference call after the business development company reported disappointing fourth-quarter earnings.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-high-tech-companies-to-own-in-right-now-3.html