Positive Catalyst For This 10.2%-Yielding BDC

In April, Triangle Capital Corp. (NYSE: TCAP) announced the sale of its portfolio assets to another investment company which was well received by TCAP's shareholders. I consider the company to be a "Buy" at today's price point, but only for investors with an above-average risk tolerance.
Triangle Capital's shares slumped in 2017 as the BDC revealed portfolio issues in the third quarter and saw a major increase in non-accruals.
Here are the company's non-accruals over the last five quarters (note the surge in non-accruals in Q3-2017):

Source: Achilles Research
Triangle Capital's underperforming investment portfolio eventually led to a major dividend cut in November, which investors used as an opportunity to dumb the BDC's stock.
Shares were obliterated in November, but they have bottomed out since and started a major recovery.

Source: StockCharts
I recommended Triangle Capital as a "Speculative Buy" after the company slashed its dividend in my article titled "This 12.6%-Yielding BDC Is A Speculative Buy On The Sell-Off". The article was published on November 17, 2017, when shares sold for $9.49. Today's share price: $11.72.
Positive Catalyst I am still positive on Triangle Capital, largely because of a positive catalyst that occurred at the beginning of April: The company sold its investment portfolio.
Management said in 2017 that it was reviewing strategic alternatives for the... Read more

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