Ticker: NMFC, Buy below $15.
New Mountain Finance is a Business Development Company that lends to middle market companies.
Why I Would Buy
- Insider Holdings – Officers and employees holds 12%+ of all outstanding shares.
- Insider Buying – Strong insider buying during last 3 and 12 months. No insiders have sold last 12 months.
- Dividend – 10%+ yield.
What Could Go Wrong
- Dilution – NMFC has been indulging in massive stock issuances.
- Beta – Tied to the health of the US economy, could get hurt disproportionately in a recession.
Disclosure: I am long NMFC, please read additional disclosures here before taking any action based on this post.