The Monthly Gems by Allan TongBlackrock Inc.BLKTOP PICKNov 01, 2022

BlackRock Capital Investment Corporation provides middle-market companies with flexible financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. Its strategy is to provide capital to meet current and future needs across this spectrum, creating long-term partnerships with growing middle-market companies. BlackRock Capital Investment Corporation is organized as an externally-managed, non-diversified closed-end management investment company and has elected to be regulated as a Business Development Company (BDC) under the Investment Company Act of 1940. Its investment advisor is BlackRock Advisors LLC, a registered investment adviser. This page also adds some information. It is significantly small ($281M) and other than the investment advisor agreement we see no direct connection to BLK. BKCC pays a high yield (10%+) and has been consistently profitable (with high variability) for 10 years. Little growth is expected in the next two years. Two analysts cover it (one HOLD, one SELL, avg. target $3.50). It has a history of missing estimates.  The $3.88 stock was more than $16 15 years ago, and it has not created shareholder value other than the dividend, which has been lowered three times in the past five years. Not much impresses us here. 
Unlock Premium - Try 5i Free

Simple: they make money on fees through assets-under-management. Expects in 2024 a strong financial market, so earnings will rise.

Are benefiting as money migrates into bonds and ETFs. But let's see how they do Friday when they report.

The largest investment management company in the world. This could come under pressure, because these large firms could face more competition, because such firms can't get any bigger. You're better off with a smaller such company.

Has a great CEO, board and technology. Why isn't the stock higher?

In complete opposite to ARKK, BLK is highly diversified which lowers your risk and protects your capital.

It is down because of commercial real estate but this makes up only a small part of the company. It is unstoppable and has an annuity type of cash flow that just keeps going. He sees rising cash flow and a rising dividend. It has 5 to 6 trillion dollars in assets.

Asset managers have not been a good place to be lately. Trades at a not cheap multiple but growth is 14%. There are better places, but a great long-term company. Can buy now.

It's breaking out of all its moving averages. Blackrock is a giant among asset managers.

Largest investment manager in the world.
Direct correlation b/w stock market and Blackrock share price.
If believe recession is comin, wait to buy. If not, good time to buy at current price level. 
Would recommend waiting to buy.

Shares have bottomed and the balance sheet is strong. The worst has passed and is now an opportunity.

In-flows could be so-so, or they could deliver good numbers. For sure, buy if the stock dips. Great asset managers and software.

Renewables and decarbonization are the future. No doubt about it. Blackrock has just launched a set of investments in this decarbonization. read their latest statement on this movement.