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Stockchase Insights Blackrock Inc. BLK-N DON'T BUY Jan 19, 2024

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

BlackRock Capital Investment Corporation provides middle-market companies with flexible financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. Its strategy is to provide capital to meet current and future needs across this spectrum, creating long-term partnerships with growing middle-market companies. BlackRock Capital Investment Corporation is organized as an externally-managed, non-diversified closed-end management investment company and has elected to be regulated as a Business Development Company (BDC) under the Investment Company Act of 1940. Its investment advisor is BlackRock Advisors LLC, a registered investment adviser. This page also adds some information. It is significantly small ($281M) and other than the investment advisor agreement we see no direct connection to BLK. BKCC pays a high yield (10%+) and has been consistently profitable (with high variability) for 10 years. Little growth is expected in the next two years. Two analysts cover it (one HOLD, one SELL, avg. target $3.50). It has a history of missing estimates. The $3.88 stock was more than $16 15 years ago, and it has not created shareholder value other than the dividend, which has been lowered three times in the past five years. Not much impresses us here.
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STRONG BUY

It's been a dog, doing nothing and trying to crack into infrastructure. Trump wants the Panama Canal back. Blackrock bought it, which could become an amazing return. But shares are still -5.56% this year. Ridiculous.

DON'T BUY

Great execution, but always on the expensive side. Nothing wrong with the company, but doesn't tick all the boxes for a value manager like himself.

BUY

A long-term position for him. He's betting on the CEO who is switching to a more lucrative model. Great technology.

DON'T BUY

It's doing very well and he likes the CEO, but it's an American stock. Trump has announced an edict (tariffs), which means stocks will go down.

WATCH

It reports Friday. The CEO will explain what will happen, that we had a well-oiled economy with a pro-business president ready to take it to the moon, but instead we got a journey to the centre of the Earth.

BUY

Likes it as a long-term hold. It's sort of a proxy for the market. Good operator. Not cheap at 17x PE, which is the current market multiple. Stock's come down with the market.

BUY

Wonderful company. Largest ETF player in the game. Markets will come back and grow, and BLK will grow along with them. Great long-term investment.

Right now, 15% withholding tax on US dividends; not on his list of worries that it will be negotiated higher under Trump. Out of his control.

HOLD

Is down 3% this year but he is holding on. He thinks that if they tell a positive story at Thursday's analyst meeting, then shares will rise.

BUY

Is surprised by today's market reaction to their earnings, -5.5%. Weakness in the quarter was due to losing a large client in that quarter, but they grew 10% in new money. Results were guite good.

BUY

The chart moved up in a straight line, but got hit too aggressively when it reported. Trades at only 23x PE. Offers tremendous growth with little risk.

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