4 Reasons Prospect Capital Corporation Is Still a Buy

By Matt Frankel – Jul 24, 2014 at 9:37AM

NASDAQ: PSEC

Prospect Capital

Market Cap

Today's Change

(-0.18%) -$0.01

Current Price

$5.40

Price as of April 22, 2024, 4:00 p.m. ET

Even after the recent gains, Prospect is still a good long-term investment. Here's why you should consider it for your income portfolio.

Prospect Capital Corporation (PSEC -0.18%) had a rough first half of 2014, but it looks like most of the bad news is in the past.

The company won its debut with the SEC over accounting issues with past earnings announcements, which also took the wind out of the sales of several law firms putting together class action suits against the company.

And, it was announced in March that business development companies including Prospect would be removed from the S&P and Russell indices, which was completed at the end of June.

So, now that the bad news is in the past, Prospect can go back to doing what it does best: strategically investing in businesses to earn excellent returns for shareholders. Here are just a few of the reasons to get back into Prospect

Matthew Frankel owns shares of Prospect Capital. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.