Prospect Capital' stock is enclosed in a bearish trend for more than a year and may reach, soon, its annual lows.
The company used to be highly profitable with a net margin of 69.8% in 2011. But the latter is now expected to fall at 38.4% this year. That data is worsening as analysts regularly revises downward their EPS estimates for 2013.
The trend is bearish in the medium term and long term. The stock is, now, back to a bearish trend line, corresponding to the 100-day moving average. Thus, the security may now start a new bearish phase towards the USD 10 short term support.
As a consequence, active investors can take a short position at the current price. The main target will be USD 10. A stop loss must be fixed above the USD 10.9 resistance.
Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses. The Companyâs investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. It invests primarily in senior and subordinated debt and equity of private companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes. It invests primarily in first and second lien secured loans and unsecured debt, which in some cases includes an equity component. It invests in debt and equity positions of structured credit, which are a form of securitization in which the cash flows of a portfolio of loans are pooled and passed on to different classes of owners in various tranches. It may also acquire controlling interests in companies in conjunction with making secured debt investments in such companies. Its investment adviser is Prospect Capital Management L.P.
PROSPECT CAPITAL CORPORATION 
