Gilford Securities Issues Research Reports on Business Development Sector Companies

New York, New York (PressExposure) February 20, 2013 -- Gilford Securities, a full-service investment firm, headquartered in New York City, announced a change in recommendation on three companies within the Business Development Sector (BDC sector) including Fifth Street Finance (FSC), Medley Capital Corp. (MCC) and Horizon Technology Finance (HRZN).

The Gilford Securities analyst noted, "We have consistently viewed the BDC Group through the lens of valuation, especially when we judge yields versus the premium and/or discount to NAV. At this juncture we are moving to a negative view of the total return prospects of the BDC group in general. Our peer group of BDC companies has reached an average 9.5% premium to NAV. We believe that a 9.5% premium to NAV is ultimately unsustainable for the long term, and thus investors would be wise to reduce position in the BDC group. As a result of our negative bias on the BDC group in general, we have to judge each of our coverage companies through a new lens."

Commenting on Fifth Street Finance (FSC), the report said, "We feel it is prudent to move to a Sell stance at this time. Fifth Street shares have regularly shown the ability to trade at or below NAV, so a premium to NAV that is in excess of FSC's yield simply imputes too much risk at this point in time." On Medley Capital Corp. (MCC), the analyst noted, "Medley is now trading at an unprecedented 23% premium to NAV. Without a significant upside NAV catalyst, it is hard to justify such a premium to NAV. We feel it is prudent to take a Sell stance on MCC at this time." Finally, commenting on Horizon Technology Finance (HRZN) the analyst said, "Our rating change is in no way a reflection of our enthusiasm for HRZN or the HRZN management team. It is a reflection of our assessment of the building risk in the valuation of the BDC group in general. Simply put, with the group at this level and little upside return left in our price target for HRZN of $16.25, we feel it is prudent to take a Neutral stance on HRZN at this time."

About Gilford Securities

Founded in 1979 by senior officers of the former Blythe Eastman Dillon & Co., Gilford Securities is a full-service boutique investment firm providing an array of financial services to institutional and retail clients including corporate finance services, independent equity research, equity sales and trading, retirement planning and wealth management. The firm's research effort targets select underserved niche segments in the small and middle capitalization market sector.

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John Richter
Gilford Securities Incorporated

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Press Release Submitted On: February 20, 2013 at 3:53 am
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