Oxford Lane Capital: Q3 Results Confirms My Optimism On Deal Activity (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Going into OXLC's Q3 FY25 results, my analysis had suggested growth shoots in the overall deal environment.
• I am glad to see that yesterday's results release is confirming my thesis, as net investments activity reached record highs and warehouse investments too saw a growth revival.
• I expect these portfolio growth drivers to translate into upticks in net investment income (NII) and NAV. But I do not like how frequent dilution is depressing NII per share.
• OXLC's valuations are trading at a 6% premium to NAV, which is typical. Hence, I think it is close to fair value.
• OXLC's relative technicals vs. S&P500 look mixed. But comparing it vs. the largest CLO ETF JAA, OXLC looks bullish.

Read the full article here.