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Stellus Capital Investment Corp V.SCM


Primary Symbol: SCM

Stellus Capital Investment Corporation is an externally managed, closed-end, non-diversified management investment company that operates as a business development company. Its investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments in middle-market companies. It seeks to achieve its investment objective by originating and investing primarily in private United States middle-market companies (typically those with $5.0 million to $50.0 million of earnings before interest, taxes, depreciation and amortization (EBITDA)) through first lien, second lien, unitranche and unsecured debt financing, with corresponding equity co-investments. It invests in various sectors, such as, services: business, healthcare and pharmaceuticals, consumer goods: durable, consumer goods: non-durable, media: diversified and production others. Its investment adviser is Stellus Capital Management, LLC.


NYSE:SCM - Post by User

Comment by epiphany2on Jun 02, 2014 10:26am
203 Views
Post# 22620682

RE:RE:RE:RE:Company's Latest MD & A on Sedar

RE:RE:RE:RE:Company's Latest MD & A on SedarI agree that there is potential for a big increase, but I'm not so sure it will be made in the short term. I don't think that the financiing will kick start the share price; I think that the market already assumes it will go through. I think the biggest problem is that the company is currently lacking in credibility. 

When you estimate that you'll be pulling five to seven thousand ounces out of the ground, increase the estimate to six to eight thousand, and then fail to deliver.... well, your credibility gets trounced. The company's plan to prevent or reduce shareholder diution through gold sales also falls apart; now, dilution is inevitable because cash is needed. 

So, how will the company increase value? Only though further exploration results and substantial gold estimate increases. And that's going to take some time, if it happens at all.

You still may be able to make 30 times your money, but you can also do this in Vegas at the roulette wheel. I'm just not sure which option provides the best odds; although, right now, I'd be leaning toward Vegas.

GLTA,

Epiphany2 
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