Kohlberg Capital Corp - Undervalued BDC with a big yield
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Several things catch my attention about KCAP:
It is undervalued compared to other BDC. The chart is firming up and trending back up as it appears to have bottomed out and found technical support. Pays a dividend of nearly 14%.
A run up to $7.50, plus the dividend would be a 40% return. The low fundamental valuation (0.88 price/book compared to the 1.5 multiple BDCs normally demand), plus the dividend should give it some downside protection. Even if it pulls back to $5.50, which is its multi-year low, it should still be net positive return with the dividend.