When you run across a stock with a 16% yield you at least have to check out the story. Prospect Capital Corp (NASDAQ: PSEC) is just such a company. Last week PSEC declared its 20th consecutive increased dividend.

In sharing my adventures and opinions in the investment world I try very hard to be candid without crossing the line into being a promoter. That said, I have been buying stock regularly over the last 12 months and buying on fear has paid off handsomely. As the market has catapulted upward since March the opportunities have diminished. However, I did add PSEC in the last month.

Analyst upgrades:

• FBR Capital upgraded Talbots (NYSE: TLB) to Outperform from Market Perform as it believes the company's inventory and SG&A control should help earnings and the stock's risk/reward is compelling at current levels. The firm raised its target on shares to $7 from $5.
• ThinkEquity upgraded Human Genome (NASDAQ: HGSI) to Buy from Accumulate to reflect higher assumptions for the company's Lupus treatment Benlysta. The firm raised its target on shares to $26 from $18.
• KeyBanc upgraded Parkway Properties (NYSE: PKY) to Buy from Hold based on valuation, improving fundamentals, and stable capital position. The firm has a $17 target on the stock.
• HSBC Holdings (NYSE: HBC) was upgraded to Overweight from Neutral at JPMorgan.
• BioScrip (NASDAQ: BIOS) was upgraded to Overweight from Neutral at Piper Jaffray.
• DISH Network (NASDAQ: DISH) was upgraded to Outperform from Neutral at Credit Suisse.

MOST NOTEWORTHY: Lincoln Electric, Prospect Capital and GMX Resources were today's noteworthy initiations:

• Piper believes Lincoln Electric (NASDAQ: LECO) is positioned to capitalize on global infrastructure spending as a leading manufacturer of welding/metal fabrication equipment and materials. Shares were initiated with a Buy rating and $100 target.
  
• Wachovia said Prospect Capital (NASDAQ: PSEC) has good visibility on portfolio growth and sees significant value in the potential sale of the company Gas Solutions business. The firm assumed shares with an Outperform rating.
  
• Collins Stewart initiated GMX Resources (NASDAQ: GMXR) with a Buy rating and $67 target. The firm believes the company's drilling program will continue to drive both strong production and proved reserves growth.

OTHER INITIATIONS:

• Louisiana Pacific (NYSE: LPX) was initiated at RBC Capital with an Underperform rating and $10 target.
  
• The firm also started Mercer International (NASDAQ: MERC) with an Outperform rating and $11 target.
  
• Keefe Bruyette initiated SWS Group (NYSE: SWS) with a Market Perform rating.