E Daily Stock Review: Main Street Capital (MAIN)

This week, I'm seeking a second robust dividend financial services sector representative for my new Ivy portfolio. 

Financial Services includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.

Today I'm reviewing a mid-cap asset management company, named Main Street Capital Corp. Its trading ticker symbol is MAIN.

Main Street Capital Corp is an investment firm providing customized debt and equity financing to lower middle market companies and debt capital to middle market companies.

It invests in consumer discretionary, consumer staples, energy, healthcare, industrials, information technology, materials, telecommunication services, and utilities sectors. It does not seek to invest in start-up companies or companies with speculative business plans. It seeks to invest in traditional or basic businesses. The firm primarily invests in companies based in the Southern, South Central, and Southwestern regions of the United States but also considers other domestic investment opportunities.

It typically invests between $2 million and $75 million in equity and $5 million to $50 million in debt, revenue between $10 million and $150 million, enterprise value between $3 million and $50 million, and EBITDA between $1 million and $20 million. The firm seeks to charge a fixed interest rate between 12 percent and 14 percent, payable in cash, in case of its mezzanine loan investments.

Main Street Capital Corporation was incorporated on March 9, 2007, and is based at Houston, Texas.

I use three key data points to gauge the value of any dividend equity or fund like Main Street Capital Corp. (MAIN): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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