TCAP

We have posted on Triangle Capital several times in our blog.  Yesterday the company, symbol TCAP, turned in a stellar quarterly earnings report where they simply outdid themselves.  We love TCAP and their business model, but this quarter they were running on all cylinders.  Our opinion of TCAP is that they are managed by the best, operate a shareholder friendly operation that feeds lots of profits to those shareholders by keeping expenses low and making smart decisions about which companies to make investments.  TCAP is a business development company that uses internal and externally borrowed capital to help enterprising established and new companies grow.  

They have not missed a beat or a increased dividend right on through the financial meltdown delivering to their shareholders. In the past few quarters they did not make as many investments as in the past and some thought they had lost their touch a bit.  The reason was perfectly TCAP as they said they did not find many good companies to invest in and they used the last year or so to harvest gains and wait with capital until opportunities arose. In the past six months they have found numerous businesses they considered worthwhile investments and have dove in strongly.  We will leave it to you to do the due diligence and go to their website and check out the latest ones, but they are impressive. 

TCAP  pays a 8% plus and growing dividend and this year added a special dividend due to the abundance of cash.  The company was founded by the current CEO Garland Tucker who is a quiet legend in the business world in which he works. We met Mr. Tucker in the past and were highly taken with his smarts, his gentlemanly grace, and ability to see the obvious when others can not.  That is why he and his team is so darn good.  Mr. Tucker is likely retiring soon, but the team he built is likely to carry on the tradition of good governance, shareholder friendly dividends and gains, and safe secure capital preservation.   TCAP selling here for around $27 is a good long term holding at this price.  TCAP will not make you rich, but it will produce income that can be counted on to grow past inflation. 

Did we say how much we love Triangle Capital?