Thursday August 16, 2007
“The foundation of a higher market is in place,” says Bryan Perry, editor of The 25% Cash Machine. Here, he takes a look at Hercules Technology Growth Capital (NASDAQ: HTGC).
“We are seeing lower interest rates, low inflation, strong earnings growth, modest GDP growth, a very-strong global economy boosting exports and a confident consumer It's my view that those market drivers will more than outweigh the trouble in the credit markets.
”The current market correction is a result of almost "perfect storm" conditions. But like all storms, this will pass and the stock market will, in my view, hit new highs before year-end.
“Hercules Technology Growth, a venture capital financing firm, recently. announced record second-quarter results where net investment income before taxes increased 193%. Management also declared a 30-cent dividend. Here are the highlights:
- Total debt and equity commitments reached $143.9 million in the quarter, representing a 253% increase over the second quarter of 2006.
- Total debt and equity funding in the quarter totaled $100.4 million -- a 205% increase over the $32.9 million funded in Q2 2006.
- Net income more than doubled to $8.3 million or 33 cents per share.
- HTGC declared the eighth dividend since inception of 30 cents
- Total investment portfolio at fair value increased to $416.7 million from $193.6 million in Q2 2006, an increase of 115%.
”As long as we continue to get these kinds of strong-to-very-strong financial results, I will remain bullish on our chosen financial stocks such as Hercules. Looking at HTGC's numbers, it is clear they are very sound financially and are executing their business plan extremely well. Use this unwarranted selling in the sector to build positions in HTGC.”
