Hercules Labors Back
After struggling for a while, shares of Hercules Technology Growth Capital (HTGC) have returned to the price at which I first presented them back on May 23, 2011. The nearly 9% indicated yield has been decent for my portfolio, but I'm more optimistic that I'll be tallying capital gains in the name (as well as dividends) in the coming year.
Hercules Technology Growth Capital supplies financing to private-equity firms operating primarily in the industries of life sciences, technology and clean energy. As such, Hercules is akin to a publicly traded private-equity firm itself. The company's investments are mostly in the form of high-yield debt, though it also picks up warrants and options to bring an equity-based upside component to the mix as well. For the most part, Hercules isn't a capital-appreciation story, since the company nee.ds to pay out at least 90% of its earnings each quarter in the form of dividends, as per its bylaws....534 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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