American Capital, Ltd. (NASDAQ:ACAS)

CAPS Rating: 4 out of 5

The Company is a business development company that also serves as publicly traded alternative asset manager.

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Player Avatar gameguru (31.12) Submitted: 9/29/2011 12:58:41 PM : Outperform Start Price: $7.09 ACAS Score: +15.32

Call me a sunny-eyed optimist, but this stock looks too good to pass up. Its renegotiated its debt covenants and been moved off the "going concern" deathwatch, but still trades at roughly .5 NAV, 1.8x earnings, and 1.5x cash flow. When they finally reinstate a dividend (likely sometime in 2012), the yield should be substantial, and I expect the stock to follow. A possible multi-bagger in the making.

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