TRIN - Trinity Capital: Record Quarter But Still Not Good Enough
2024-04-28 05:08:04 ET
Summary
- Trinity Capital Inc. offers high dividend yield of 13.7% due to its high-risk investment strategy.
- TRIN's Q4 2023 earnings report showed strong results, but portfolio quality deteriorated with a migration to riskier loans.
- Despite positive core performance metrics, TRIN has consistently underperformed the market and remains a speculative investment.
- In this article, I elaborate on why I continue to view TRIN as a subpar and overly speculative investment after the recent earnings report.
Late December last year, I issued my first article on Trinity Capital Inc. ( TRIN ) , which focuses on providing debt and equipment financing to growth stage and smaller size companies. In terms of the typical investments, which TRIN offers to these companies, there is nothing extraordinary as the lion's share of the portfolio consists of floating rate term debt, and to some extent, also equipment financing with the equity-like investments constituting a relatively insignificant chunk of TRIN's exposure....
Trinity Capital: Record Quarter, But Still Not Good Enough