Traders Cooperative

[hercules16]

KCAP is having accounting troubles (Their accountant doesn't like how they value some of their investments apparantly http://www.sec.gov/Archives/edgar/data/1372807/000114420409066325/v169934_ex99-2.htm). Consider that relatively small writedowns result in violating the 2:1 leverage maximum this is a significant problem.

I would be buying if it gets hit down to 4 and especially at $3. Book value is $11 so Mr Market seems to recognize that it is probably worth less than book value.

I think it is worth more than $4.73 but given the uncertainty surrounding it I don't see the upside catalyst in the near term.