Gladstone Capital Corporation (GLAD)

(A Top Pick May 27/21, Down 12.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GLAD has triggered its stop at $10. To remain disciplined we recommend covering the position at this time.

(A Top Pick May 27/21, Up 3.1%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with GLAD is progressing well. We now recommend trailing up the stop (from $8.50) to. $10.00 at this time.

Stockchase Research Editor: Michael O'Reilly GLAD is a private equity company that invests in the debt of companies with sales of $20-$150 million. It trades at 6x earnings, compared to peers at 19x. It pays an outstanding dividend, which pays out almost 100% of the cash flow generated by design. It is invested in 47 companies across many sectors. Over 90% of the loans made are secured by collateral and debt-equity of 86%. A good holding for an economy in recovery. Not a massive growth company (although its up over 44% this year), but it offers great income. We would buy this with a stop loss at $8.50. As it is an income generator, we will not set an upper target. Yield 7.1% (Analysts’ price target is $9.25)