Dividend Yield: 10.1%
Market Cap: $270 million

Business development company PennantPark (PNNT) is a leading provider of "mezzanine" financing and has a dividend yield of more than 10%.

Mezzanine capital is unsecured, and since it is often used by smaller companies and may involve greater overall leverage levels than issuers it can come with high risk. However the returns on these types of loans are very substantial -- and now that the worst of the economic downturn is behind us, PennantPark stands to do brisk business.

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MOST NOTEWORTHY: TheStreet.com, Corning and AeroGrow were today's noteworthy initiations:

• ThinkEquity believes TheStreet.com (NASDAQ:TSCM) has solid growth prospects and sees catalysts from the integration of Promotions.com, expansion into new verticals, and new syndication deals. The firm intiiated shares with a Buy rating and $18 target.
  
• Corning (NYSE:GLW) was initiated with a Buy rating and $31 target at Jefferies, as they believe the LCD industry is positioned for healthy trends in 2008 and beyond.
  
• AeroGrow (NASDAQ:AERO) was initiated with a Buy rating at Merriman, as they believe infomercials, catalog mailers and the company's website should enhance product visibility, driving higher sales across all distribution channels as well as brand awareness.

OTHER INITIATIONS:

• Baird started Pennant Park (NASDAQ:PNNT) with an Outperform rating and $13 target.
  
• Spansion initiated Under Armour (NYSE:UA) with an Overweight rating and $55 target.
  
• UBS started Johnson & Johnson (NYSE:JNJ) with a Buy rating.

MOST NOTEWORTHY: PennantPark (PNNT), Delta Air Lines (DAL) and several insurance companies were today's noteworthy initiations:

• PennantPark Investment Corp. (NASDAQ: PNNT) was initiated with a Buy rating and $17 target at Jefferies. The finds shares compelling given the potential dividend growth and book multiple expansion. PennantPark was also initiated at Keefe Bruyette with an Outperform rating and $18 target, at Banc of America with a Buy rating and $16 target and at Friedman Billings with an Outperform rating and $17 target.
• Delta Air Lines Inc. (NYSE: DAL) was initiated at Bear Stearns with a Peer Perform rating and at Cathay Financial with an Outperform rating.
• Banc of America initiated RenaissanceRe Holdings Ltd. (NYSE: RNR) with a Buy rating and Montpelier Re Holdings Ltd. (NYSE: MRH) and IPC Holdings Ltd. (NASDAQ: IPCR) with Neutral ratings.

OTHER INITIATIONS:

• Dell Inc. (NASDAQ: DELL) was initiated with a Hold rating and $24 target at Soleil.
• Robert W. Baird initiated Avery Dennison Corp. (NYSE: AVY) with an Outperform rating.
• Steel Dynamics Inc. (NASDAQ: STLD) was initiated with a Buy rating and $58 target at Citigroup.
• Nollenberger initiated Lakes Entertainment Inc. (NASDAQ: LACO), MTR Gaming (NASDAQ: MNTG) and Full House Resorts (NYSE: FLL) with Buy ratings and Monarch Casino (NASDAQ: MCRI) with a Neutral rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).