PNNT - PennantPark Investment: From Suboptimal To Completely Unattractive Investment

2024-03-15 02:08:45 ET

Summary

• PNNT's Q1, 2024 earnings report exceeded expectations on core NII, but broke the momentum in NII growth.
• On the surface, the key performance metrics (e.g., non-accruals, net investment volumes) remained sound.
• Yet, if we assess the situation deeper, we will notice higher risk concentration and decreased margin of safety from the already low levels before Q1, 2024 results.
• In this article, I outline my thinking on why I consider PNNT an unattractive investment.

Right at the start of this year, I circulated an article on PennantPark Investment Corporation ( PNNT ) arguing that it lacks several qualities that are necessary for sound defense....

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