TCAP...We have long liked Triangle Capital and we really like it here at about $21 per share and what we believe is a sustainable above 10% yield. Well managed and did not cut their payout right on through the financial crisis. They had a small hiccup in earnings last quarter, which looks to us to be an unusual event. Yes this is risk money, but we are looking an entry point ourselves so put them on your radar. No reason TCAP is not selling nearer $25, or even closer to $30.
T...AT&T has sold off due to concerns over the brutal competition in wireless. But in our opinion the sell off is a bit too much and the yield now over 5.5% is just too juicy to ignore. Seriously who would want a low yield US Treasury when you can own safe and secure AT&T yielding this much and you get annual increases in the dividend? Plus a couple of dollars of capital gains as well.
NEWM..New Media Investments...We continue to like this newspaper stock and that since it has moved up above $19 where we suggested purchase. It is still not priced in the nice fold in buy of Halifax Media and the company is still on the hunt for more of those nice small to medium sized newspapers which are producing 12% or more annual returns. Note the Halifax buy works out for a 20 % plus annual EBITDA. Unlike many of the former newspaper chains NEMW is using mostly cash to buy other properties. Selling at just above $21 we still see the high $30's as a fair price.
NNC...Nuveen North Carolina Premium Fund...Low rates and continuing fiscal control by North Carolina makes this now almost 5% tax free yield a darn good buy at just over $13. The closed end mutual fund has repeated last year's sell off and that has made the shares a buy. Take advantage and enjoy the monthly tax free dividends and capital gains potential with this fund selling $2 below net asset value.
MEG..Somewhere further out on the risk curve is Media General. This former newspaper company has sold all their newspaper properties and kept the television stations. They have folded in a couple of other television companies now to be a large sized owner of television stations in medium sized markets. We like the fact many of those stations are in states where millions of political dollars will be spent next year in the Presidential election. We also like their markets in general which are in growth areas like the Southeast US. Lastly Warren Buffet owns about 5% of the outstanding shares, a fact most people do not know.
We have positions in NNC and T.
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