MVC mentioned favorably in Barron's today, fwiw:
John E. Deysher,manager of the $53 million Pinnacle Value Fund (ticker: PVFIX) said, "MVC...has a pristine balance sheet, and most of its investments are holding up fairly well. Second, there is some question as to what the values of these private companies are. Clearly, valuation multiples are coming down, but MVC is very conservative in its valuations. It has a net asset value of $17 a share right now and is trading for 9. They have taken markdowns on a couple of portfolio companies. But we think most of the 40 or so companies they have in the portfolio are still doing OK. Their ability to access capital is not much of an issue since MVC is not dependent on a lot of debt.
Where is it getting its money?
They have a big equity cushion, and their loans are maturing so they are getting back principal, which has to be reinvested. Eventually, they will sell some of their equity investments, hopefully at a nice profit. So right now they are not doing a lot of buying, because they are being conservative and hoarding the cash that they do have. But they are going to be well positioned going forward, because the current low multiples will make merchandise available at good prices.
Any big worries?
Yes. If the stimulus package doesn't work and we continue on this vigorous cycle of negative news that further drives down confidence...that's not good."
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I'm not recommending the stock to anyone. Just posting an opinion/information I've come across now on an obscure (I presume) stock I recently bought. And to me, it's an obscure fund and fund manager as well. -g- |
