Some stocks are worth owning

There are a few public companies with the potential to take advantage of the mess created in housing and on Wall Street. In particular I am looking at Business Development Companies (BDC) and Real Estate Investment Trusts (REIT).

Some of the best of these companies can be found in one CEF (closed end fund) under one symbol; FGB - First Trust/Gallatin Specialty Finance and Financial Opportunities Fund.

This fund owns stock in companies that loan money to and invest in other businesses. These include two of my favorite areas of investing; Business Development Companies (BDC) and Real Estate Investment Trusts (REIT).

To reduce taxes, these types of businesses are required to pass along the bulk of their earnings to the share holders as distributions. I have found it harder for Company Management to squander investor money when they can't keep it to themselves.

The top holding make up about 80%:
Prospect Energy Corp -
MVC Capital Inc -
Annaly Capital Management, Inc
Ares Capital Corp.
Gladstone Capital Corp.
Hatteras Financial Corp.
BlackRock Kelso Capital Corp.
Cypress Sharpridge Investments, Inc.
Medallion Financial Corp.
Hercules Technology Growth Capital, Inc

This fund is currently selling for $4.26 a share and paying over 13% yield.
It trades in fairly light volume so use limit orders if you buy it.
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Be aware, there are special tax considerations to contend with when you own these. You may want to consult an accountant.