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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (39946)	11/8/2010 8:42:00 AM
From: Madharry	Read Replies (1) \| Respond to of 78657

I too am annoyed that mgmt wants to issue shares at below nav, makes me wonder if this isnt some cousin to a ponzi scheme. always seems like they are paying dividends out of the proceeds of the new shares that they issue. sold psec for that reason. meanwhile back at the ranch-china ceraminc cccl reported 3rd Q earnings of .84, not bad for a stock selling at $9.50 or so. conference call at 9am but i will be not listening in since there is no Q & A afterword.

To: Paul Senior who wrote (39946)	11/12/2010 1:17:45 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78657

BDC. I still have concerns about bdc's. However, everything is price-related, and with bdc CODI down today on its share offering, I will somewhat fearfully up my shares a significant amount. 1. CODI acquires and controls small businesses. Therefore, unlike many other bdc's, CODI should have insiders knowledge of their investments. More significantly, CODI controls the future of their businesses, i.e. when it might be time for CODI to sell the companies in its portfolio. 2. CODI current share price is above stated book value, so in that sense current holders are not diluted by the share issuance. 3. Of course there's the good annualized distribution $1.36 on a now $16.70 stock, which translates to about 8%. 4. According to the company there's no significant debt that matures before 2012. And the debt level doesn't look excessive to me. 5. The key reason I'm willing to add now and to this particular stock is that among all the bdc's I follow and have followed, CODI is one of the few which has not cut its distribution in the 2007-2010 time period. If the distribution can hold, I expect there to be a margin-of-safety with the stock at current price. (Of course, in a down market like we've seen and might see again, that expectation might be very wrong.) finance.yahoo.com Company presentation here: files.shareholder.com