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MVC Capital Enters the New Year with Insider Cluster Bets

January 08, 2013 | About:
Private equity and debt investment company MVC Capital has reported five Insider trades since Dec. 31, according to GuruFocus Insider Cluster Buys.

The transactions consisted of three share purchases and two share sells, as broken down below:

1. MVC Capital Chairman Michael Tokarz purchased 82,500 shares at $12.17.

2. Director Robert C. Knapp sold 60,100 shares at $12.13.

3. Managing Director Bruce W. Shewmaker bought 1,000 at $12.

4. Director Robert Knapp sold 29,900 shares at $12.12.

5. Director Gerald Hellerman bought 1,537 shares at $12.15.

(View insider data at MVC Insider Activity)

As GuruFocus has highlighted before, multiple purchases by several execs in a short amount of time signals big gains to come.

Although MVC Capital’s market value has only gone up only 2.02 percent within the last year, its dividend income for the 2012 year has increased to $5.1 million compared to $2.9 million in 2011, a 12.9 percent increase.

Market capitalized at $293.6 million, MVC Capital provides long-term equity and debt investments to small and middle-market companies to fund business growth, acquisitions and recapitalizations (mvccapital.com). New York-based Tokarz Group Advisers is MVC’s investment adviser. MVC Capital has served companies in various industries from automotive, energy and financial services, to entertainment, medical and industrial.

Gurus Chuck Royce, Michael Price and Mario Gabelli are big holders of MVC Capital shares. (MVC: Guru Trades).



MVC has an annual revenue growth of 23.74 percent. It reported a total operating income of $6.1 million in the fourth quarter compared to $3.4 million in the same period in 2011. The company increased in interest and borrowing costs in the fourth quarter year over year by $103,000.

Chairman Tokarz heads MVC’s investment advising company, and has 30 years of lending and investment experience. He is a former partner at Kohlberg Kravis Roberts & Co. (KKR), and has reported making big buys in MVC Capital shares over the years. Just last June, he purchased 30,000 shares, as well as 10,108 shares two months prior. (Michael Tokarz Market Overview)

Overall, MVC’s insiders reveal consistent company confidence based on its insider trading history.



One of MVC’s six Warning Signs denote a dividend payout ratio that’s too high. To be exact, MVC’s dividend yield comes up to 4.6 percent.

In October, MVC distributed a quarterly dividend of $0.13 per share, which increased 12.5 percent from the amount in the prior quarter. In December, MVC paid the same dividend rate by the end of the month, which totaled $88.9 million in distributions.

MVC has a trade price of $12.26, and is up 0.86 percent about an hour before market close.

To view its financial stats, visit 10-Year Financials.

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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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