Volume Spike Investor

MCG Capital Corporation (NASDAQ: MCGC) is finding out what more of the same lack of love feels like.

The stock got blasted as revenue fell from $50.2 million to $31.1 million. operating income fell from $28.5 million to $13 milion. Losses from the company’s portfolio made resuls worse. MCGC reported a net loss of $0.96 per share, compared with net income of $0.04 per share in the quarter ended March 31, 2008. This decrease primarily resulted from the recognition of $82.4 million of net unrealized losses on our investment portfolio.  If you trusted that P/E ratio of 3 or 4, you should have known better.

Shares are down nearly 40% to $2.91, a new recent low.  its 52-week trading range is $3.19 to $15.45, so you know it’s a battered prisoner.

As of 9:40 AM it has traded about 300,000 shares and its average volume is about 1.2 million shares.

Jon Ogg
August 7, 2008