Land This Cheap 13.1% Yielder Even Lower Than Chief Executive Officer Taube Did

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on June 1, Medley Capital Corporation's Chief Executive Officer, Brook Taube, invested $235,255.67 into 25,000 shares of MCC, for a cost per share of $9.41. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

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In trading on Tuesday, bargain hunters could buy shares of Medley Capital Corporation ( MCC) and achieve a cost basis 2.8% cheaper than Taube, with shares changing hands as low as $9.15 per share. Medley Capital Corporation shares are currently trading up about 0.4% on the day. The chart below shows the one year performance of MCC shares, versus its 200 day moving average:

Medley Capital Corporation Chart

Looking at the chart above, MCC's low point in its 52 week range is $8.61 per share, with $13.47 as the 52 week high point — that compares with a last trade of $9.21. By comparison, below is a table showing the prices at which MCC insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
06/01/2015 Brook Taube Chief Executive Officer 25,000 $9.41 $235,255.67
06/01/2015 Seth Taube Director 25,000 $9.41 $235,252.57
05/29/2015 Jeffrey B. Tonkel Director 5,000 $9.41 $47,051.00
05/28/2015 Richard T. Allorto Jr. Chief Financial Officer 5,000 $9.34 $46,700.00
05/28/2015 John D. Fredericks Chief Compliance Officer 1,000 $9.29 $9,289.00

The current annualized dividend paid by Medley Capital Corporation is $1.20/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 05/18/2015. Below is a long-term dividend history chart for MCC, which can be of good help in judging whether the most recent dividend with approx. 13.1% annualized yield is likely to continue.

MCC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, MCC makes up 2.76% of the BDC Income ETF ( BIZD) which is trading relatively unchanged on the day Tuesday.

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