Tuesday, June 26, 2018 11:39:36 AM
BDCs are the go-to organizations companies turn to when money is critical to maintaining their day-to-day operations. When a company's stock is on the mat due to lack of available capital or a host of other issues too numerous to identify in this post but usually involving questionable creditworthiness and/or large debt obligation, investors tend to step back, fearful there'll no way to securitize their wish to see a particular company survive.
So what are the obvious options?
Well, a publicly traded company sells equity in exchange for cash. When you can't afford to buy & own, you rent and pray. The monthly rent paid doesn't contain a cash-back caveat, money paid is gone---permanently. In the case of Hercules, the objective after first identifying a good opportunity involving the trading of cash for equity, it's understood that HTGC wants to loan cash in order to gain a more permanent foothold in the company thru the access of equity. In simplest terms, HTGC is on the prowl, seeking opportunities to own parts of many viable companies.
Smaller companies are the likely partners-in-mind. Exhaustive research is the first building block in the BDC's decision-making process. In a way, you could say that this BDC is offering operating cash in exchange for a piece of the pie. The BDC expects to be repaid by a return of capital through the eventual sale of some or all of that equity and "rent-like fees" (loans to be repaid according to a strictly organized schedule based on specifics built into the loan structure/contract between BDC and the financially stressed company.
Tax changes on the move will trickle down into Mom & Pop businesses, many of which comprise a sizable portion of the companies being eyed by BDC. This will enhance growth opportunities for the BDC as it legitimizes loans not previously thought to be smart. But more importantly, circuitry involving loans for needy companies and companies prepared to make those loans available are at the beginning of a door-opening process thanks to an encouraging Administration bent upon promoting America's rebirth in building smaller business options.
This is a no-brainer for me and I now hold:
1,508 shares with a cost basis of $12.64.
This is a much smaller position than I want but it's what I can afford to put together at the moment. There's not a doubt in my mind but that HTGC is going much higher from here.
I began my accumulation on 6/18/18 or about a week ago---and now find a gain of $300.
To say I'm pleased is vastly understating things. Yahoo! makes it clear that analysts are viewing this as a strong contender for loftier trading numbers. Barchart Opinion has it listed with a 100% "buy" declaration.
For me, though, HTGC is likely to be my first target for add-on purchases when some of the NGL distribution money comes in. And I'm reducing other holdings daily in an effort to gain a stronger foothold in HTGC.
Good luck folks. And think twice about waiting to launch. Waiting is a form of slow death, all too often.
Recent HTGC News
- Hercules Capital Celebrates 20th Anniversary with $20.0 Billion in Cumulative Originations • Business Wire • 04/24/2024 10:00:00 AM
- Hercules Capital Announces Date for Release of First Quarter 2024 Financial Results and Conference Call • Business Wire • 04/18/2024 10:00:00 AM
- Hercules Capital Receives BBB- Affirmed Investment Grade Credit and Corporate Rating from Fitch Ratings, Inc. • Business Wire • 03/27/2024 10:00:00 AM
- Hercules Capital Receives Confirmed BBB Investment Grade Rating with Revised Outlook to Positive from Morningstar DBRS • Business Wire • 03/21/2024 10:00:00 AM
- Hercules Capital Announces Upcoming Event for the Financial Community • Business Wire • 02/20/2024 11:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/15/2024 09:31:11 PM
- Hercules Capital Reports Fourth Quarter and Full-Year 2023 Financial Results • Business Wire • 02/15/2024 09:07:00 PM
- Hercules Capital Declares a Total Cash Distribution of $0.48 per Share for the Fourth Quarter 2023 • Business Wire • 02/13/2024 11:02:00 AM
- Hercules Capital Announces New Supplemental Cash Distribution of $0.32 per Share • Business Wire • 02/13/2024 11:00:00 AM
- Form 4/A - Statement of changes in beneficial ownership of securities: [Amend] • Edgar (US Regulatory) • 01/30/2024 10:40:32 PM
- Hercules Capital Announces Date for Release of Fourth Quarter and Full-Year 2023 Financial Results and Conference Call • Business Wire • 01/25/2024 11:00:00 AM
- Sight Sciences Announces the Closing of up to $65 Million Senior Secured Credit Facility with Hercules Capital • GlobeNewswire Inc. • 01/23/2024 09:05:00 PM
- Form ABS-15G - Asset-backed securitizer report pursuant to Section 15G • Edgar (US Regulatory) • 01/22/2024 04:23:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/18/2024 12:47:37 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/18/2024 12:47:11 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/18/2024 12:46:51 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/17/2024 01:29:03 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/17/2024 01:28:46 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/17/2024 01:28:28 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/17/2024 01:28:14 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 11:30:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 09:44:57 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 09:44:27 PM
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