I feel Capital Southwest Corporation (CSWC) at the moment is offering an opportunity for patient, long-term investors. The stock was trading in the mid-50s in March, which would have been an excellent buying opportunity. Subsequently, CSWC advanced to the mid 80s and now its sitting near 70.
Here is a 10 year monthly chart (click for larger image).
So what does CSWC do? From their website:
Capital Southwest is a publicly–owned business development company with total assets of $486 million as of December 31, 2008. We provide patient capital to exceptional businesses with significant growth potential. As a public company, we have the flexibility to hold investments indefinitely, which has provided the management teams of our holdings a stable ownership platform since we were founded in 1961.
You can see their investment/business portfolio here. It looks like a diverse portfolio with investments in small banks, medical device companies, software companies, and drilling equipment among other things.
Right now CSWC has a net asset value of about $111 per share, so the stock is trading roughly 0.63 of net asset value (or at a 37% discount of net asset value). This looks like a bargain to me if you missed a chance to pick this up in March.
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