I am announcing an Immediate-Buy on closed-end investment boutique Apollo Investment Corporation (AINV) at the current $6.50 per share level. Apollo is a New York-based BDC (Business Development Company) that generates both current income and capital appreciation through debt and equity investing in middle-market private companies.

Apollo shares topped $18.50 a year ago and have been in a solid uptrend since around mid-March of this year. Although the company recently reported that total assets decreased by a third to $2.5 billion from $3.7 billion at the same time last year, Apollo’s investment income actually increased by over 5% to $377.3 million. The company also announced that it is maintaining its current 26-cent quarterly dividend after slashing that amount by 50% from the 52-cent level last year.

Apollo has a Net Asset Value of approximately $9.82 per share – thus, at the current $6.50 per share level, AINV shares are trading at a 33% discount to book value. Buy Apollo Investment Corporation (AINV: Nasdaq) at the current $6.50 per share range.

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