$2.89
-0.02 (-0.69%)
American Capital, Ltd. (ACAS)
CAPS Rating:
The Company is a business development company that also serves as publicly traded alternative asset manager.
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June 15th, 2009 payable by Setember 30, 2009, ACAS will be declaring a $300 million dollar dividend in order to meet its RIC requirements. New rules allow the company to pay up to 90% of the dividend in stock. The Company will be announcing how the dividend will be paid out at that time. The directors have also asked the shareholders to approve a reverse stock split, at which point they will sell a limited number of shares to raise cash, which would be used for general purposes and to bring the ACAS to a resolution of it's defaults. The Company believes its NAV per share is $17.07, but due to FAS #157 ACAS's stated NAV it's $12.32, as of March 31, 2009. ACAS feels the stated NAV does not reflect the companies assets if they were to be sold in a more favorable business climate.
In short, ACAS has a plan to correct the perceived share value for it's investors. It seems to be a sound plan. Only time will tell for sure. I personally feel much better about their prospects of remaining a going concern. I would be very conservative with new money until after they announce how the dividend will be paid, and how many shares you will own after the reverse stock split. We can only wait until June 15th to see what the final plan will be. If it satisfies the creditors, it's share price should gain upward momentum rather quickly, as the stock should be valued somewhere between $12 to $17 before the reverse split, (not including dilution from new shares issued). It is currently trading near $3.
I find it interesting that you mention that the directors have asked stockholders to approve a reverse stock split, but not, that at the June meeting they are going to ask us to approve an amendment allowing up FOUR REVERSE STOCK SPLITS OVER THE NEXT YEAR!!! How are you going to vote that one? I guess I should have been smarter and bought up tons of shares like the directors were when the share price fell to 60 cents a share. As usual they will be the only winners after all the reverse stock splits.
I bought it in 2001 for around $26 and I bought alot more around $1.50 recently. My cost average is aound $10. I have alot more invested in a spec stock than I normally would, it was not intended to be a spec investment. A stock split or a reverse stock split should not be important, the $ value doesn't change, only the number of shares. As for the directors I hope they make some money. I hope you do to, and your neighbor, and their kids, etc... I am all for making money. I don't care who makes it. The directors sure did miss the signs last summer before things tanked. Most of them lost alot more value in the company than I did. I voted yes for the reverse splits, I coulnd't find a reason that would benefit me to vote no. Happy hunting! Hopefully this one doesn't smell so bad in a couple weeks!
I own 600 shares of ACAS and did not get a notice to vote on the reverse split, when did that happen?
A few days ago. Go to there website www.americancapital.com/ and on the lower left side sign up for email updates. There is probably a place to vote on the site also.
Yes, I too bought in at 26 dollars and of course your correct in the fact that after a reverse split you don't have less value, just fewer shares. However , bin there, done that, and in my case after the reverse split I'm feelin pretty happy because my stock is at least worth something again. Then the economy tanks and all of a sudden I'm sitting here holding a less then two dollar stock again. OK, it was a spec investment but non the less I'm unhappy again. Even though I don't share Option1307's opinion that ACAS is worthless, it could drop like a rock again, so I sit here and speculate with everyone else. I just don't have alot of hope that ACAS is going to be the company that it was again, and they own some pretty terrific companies, (and they DID do well in selling Piper) but they have too much debt and don't seem to be as concerned about it as I certainly am! I guess I may need to decide if I want to continue owning any stock (it IS such a fun game and I have made good money) or just get out because I myself don't think the fat lady has sung yet and when she does, it's gonna be loud! I just bought Peter D. Schiff's book, "Crash Proof" Guess I'll read it and make my decision after that. This man is BRILLIANT and his foresight is almost spooky. Anyway, I wish all of you good luck!
Well it is now 8/11/2009 and anyone owning ACAS received their stocks instead of cash.
Getting 200 shares from my 600 shares is a nice real world gain. Stocks are like candy to me, can never get enough of it.
All of the doom and gloom for ACAS is now over till the next round, but the BEARS are taking it on the chin by all of the BULLS running around the stock market now.I believe this stock is safe for a long term play.
Motley Fool still has not adjusted our pick with the stock split. How can we let them know about this issue which is causing our pick to look really bad? We are distorted by a $1+
To date I am showing a 44 point loss because the Motley Fool MyCaps has not posted the Dividend. So anyone who is holding this stock in your portfolio needs to send MF Mycaps a email telling them they do not appreciate an artificial loss. If you have held this stock since the Dividend your score is wrong. Please email Motley Fool about this. Ten emails to Motley Fool's team and I cannot get the dividend corrected. Can you fellow fools help me by emailing them?