New Mountain Finance Corporation

Ticker: NMFC, Buy below $15.

New Mountain Finance is a Business Development Company that lends to middle market companies.

Why I Would Buy

  1. Insider Holdings – Officers and employees holds 12%+ of all outstanding shares.   
  2. Insider Buying – Strong insider buying during last 3 and 12 months. No insiders have sold last 12 months.
  3. Dividend – 10%+ yield.

What Could Go Wrong

  1. Dilution – NMFC has been indulging in massive stock issuances.
  2. 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.