Q: My question is about Manhattan Bridge Capital Inc ( LOAN on NASDAQ).
The company pays a regular7.6% quarterly dividend and the stock trades in a range of $6.00 to $6.60. The company seems to have quite stable income but is highly leveraged. Nevertheless if the pundits are correct and we have low interest rates for 2020, would it make sense to borrow money at 5% to buy this stock? What could possibly go wrong?
Cheers
Ian
The company pays a regular7.6% quarterly dividend and the stock trades in a range of $6.00 to $6.60. The company seems to have quite stable income but is highly leveraged. Nevertheless if the pundits are correct and we have low interest rates for 2020, would it make sense to borrow money at 5% to buy this stock? What could possibly go wrong?
Cheers
Ian