Key insights
- The author suggests that Gladstone Investment Corporation ($GAIN) is undervalued due to its ownership of Schylling, the maker of NeeDoh stress balls. Strong demand for NeeDohs is driving NAV growth and high debt yields, leading to an expectation of positive earnings and a potential stock price increase after the May 13th earnings call. This could positively influence the stock price of GAIN.
$GAIN :
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~1.1x NAV
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~6% monthly dividend
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~12% yields on debt → strong income
For those who don’t know, NeeDohs, these squishy stress balls, have been selling out like crazy. People are lining up at stores to get their hands on them and the trend is not slowing down. Gladstone investment corporation is the owner of the company who produces them, Schylling.
Schylling (NeeDoh):
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~10% of portfolio
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big driver of recent NAV growth
Positioning: steady income + NAV growth
$GAIN is going to skyrocket after their earnings call on may 13th