Three weeks ago, I recommended that you buy shares of Apollo Investment Corporation (AINV) at the $6.50 per share level – stating, among other things, that the company held a Net Asset Value of approximately $9.82 per share. Just 8 trading days later, AINV proved me exactly right as the stock spiked 53% higher to $10.00 per share.

All indicators point to Apollo Investment (AINV) moving steadily upward over the next few business quarters. The company recently blew away consensus expectations in its fiscal first quarter – earning 59 cents a share – as analysts looked for 34 cents. Apollo also lowered its expenses while raising its quarterly dividend.

Whereas Apollo’s competitors such as Allied Capital and American Capital continue to post losses coupled with a decrease in equity value, AINV anticipates less competition ahead and plans to capitalize on what it sees as “attractive opportunities” in the market. With fewer hedge funds and other highly leveraged investment vehicles currently investing in subordinated debt, Apollo Investment is tapping industry titans Citigroup, Bank of America, Merrill Lynch, and JPMorgan to help it raise money to pay down debt and fund future deals: AINV’s public stock offering just netted the company $173 million.

Apollo Investment (AINV) shares are benefitting from the current market-rally as the company reaps net realized and unrealized gains on its investments. I see Apollo’s recently-improved balance sheet performance continuing over the coming quarters -- AINV shares should now be held for the longer-term. Yet there’s no problem, of course, with taking partial gains off-the-table at current price levels.

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