The Yield Hoe's Notebook

Monday, May 21, 2007

Get 9% from Small and Mid Cap Financings

Capital Source, symbol CSE, is offering 9 percent form certain middle market financing activities that include the upscale chain coffee-pastry shop, Au Ban Pain (or "Urban Pain", as we used to say), JC Penny store, a child photography business, vacation club membership business, and a few prime Chicago hotels to name a few. To see more, click their recent transactions. They described as offering:

Corporate Finance, Healthcare and Specialty Finance, and Structured Finance. The Corporate Finance division provides senior and mezzanine loans to businesses backed by private equity sponsors. The Healthcare and Specialty Finance division offers asset-based revolving lines of credit, first mortgage loans, and senior and mezzanine loans to healthcare businesses and other companies. The Structured Finance division provides commercial and residential real estate lending, and asset-based lending to finance companies.


CSE trades at a low P/E vs. it's growth, or .62 by recent count, which seems almost TGTBT and may well be, so it's best to look before a leap; but Zacks appears to like it too.

Right now, it trades at it's 200 day moving average, which would suggest a good point to plough in for a little high yield with good growth prospects, something you won't get from most bonds.

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