Logan Ridge Finance (LRFC), mcap=$53m, price $19.5 vs. $23.3

Pitch: BDC with one of the widest 40% discounts to NAV. Lack of scale, no dividends, and ⅓ of the portfolio in equities. New management in place with a track record of taking over busted BDCs and closing the gap to NAV (e.g. PTMN).

Valuation: Dec’21 NAV stands $39.5/share. If portfolio turnaround is successful, NAV remains unchanged and LRFC narrows the discount to PTMN levels (16%), then the target price is at $33/share.

Exp. gain: 40-50%

Full LRFC write-up (free guest account required):
https://valueinvestorsclub.com/idea/LOGAN_RIDGE_FINANCE_CORP/3764201311

 

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