The Great New Investment of the Next
Decade-(BDC’s) Business Development Companies
registered under the 1940 Act of the Securities and Exchange Commission.
Click here for a news piece sponsored by TS&B Holdings, Inc.
http://www.TSBHoldings.com/tsbi.htm
The following are
excerpt of the attached Newsletter.
Should
You Consider Investing in a BDC?
BDC's, or Business Development Corporations, are currently receiving a great
deal of
press coverage. What are they, and should you consider them for your own
investment portfolio?
The
Advantages of Investing in a BDC
- Clearly, the first advantage is that the
opportunity to participate in private equity funding can be immensely
rewarding. If
BDC's are well managed, many fine opportunities await their capital and the
rewards
can be realized in rising share prices and/or dividends paid by many BDC's to
maintain favored tax status.
The
Possible Disadvantages of Investing in a BDC - Primarily, the negatives
that have been expressed about BDC's relate to management. In particular, one
scenario has developed that is well worth noting. The rush to BDC formation has
been led by many of the traditional private equity firms that wish to tap into
monies
from the public to build quick, large pools of cash to manage. All of them
intend to
maintain their existing private equity funds as well.
A
Look at Some Specific BDC's - We
have already mentioned the largest BDC,
Allied Capital (NYSE: ALD). On July 22, 2004 they announced a third quarter
dividend of $0.57 per share. The stock is currently yielding 10.26%, and had a
recent price of $22.34. They specialize in mezzanine debt and equity capital
Click here for a news piece sponsored by
TS&B Holdings, Inc.
http://www.TSBHoldings.com/tsbi.htm
TS&B Holdings, Inc.
1-407-649-8325
www.TSBHoldings.com
e-mail: Info@Tsbholdings.com
DISCLAIMER: This is not an Offer to Buy or Sell Securities. You must contact a
registered representative to purchase
securities. This news provided herein is for informational purposes only.
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