Several things catch my attention about KCAP:
It is undervalued compared to other BDC.
The chart is firming up and trending back up as it appears to have bottomed out and found technical support.
Pays a dividend of nearly 14%.
A run up to $7.50, plus the dividend would be a 40% return. The low fundamental valuation (0.88 price/book compared to the 1.5 multiple BDCs normally demand), plus the dividend should give it some downside protection. Even if it pulls back to $5.50, which is its multi-year low, it should still be net positive return with the dividend.
It is undervalued compared to other BDC.
The chart is firming up and trending back up as it appears to have bottomed out and found technical support.
Pays a dividend of nearly 14%.
A run up to $7.50, plus the dividend would be a 40% return. The low fundamental valuation (0.88 price/book compared to the 1.5 multiple BDCs normally demand), plus the dividend should give it some downside protection. Even if it pulls back to $5.50, which is its multi-year low, it should still be net positive return with the dividend.