American Capital, Ltd. (NASDAQ:ACAS)
CAPS Rating:
The Company is a business development company that also serves as publicly traded alternative asset manager.
Investors Writing for Investors
The Company is a business development company that also serves as publicly traded alternative asset manager.
BATS data provided in real-time. NYSE, NASDAQ and AMEX data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates and Analyst Ratings provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions
RSS Headlines
Fool UK
Recs
This company is the baby that has been thrown out with the bathwater. The stock has been punished severely because it is a "financial," and has had to write down some of its holdings because of the new accounting laws. These write-downs are smoke and mirrors. They have to carry their holdings as "market value," even though there is practically no current market for them and they have no intention of selling now. They will continue to hold them until maturity, and they will continue to perform. One can well expect that these "write downs" will be written back up in future when they do come to maturity. It has been punished along with all the other stocks in the financial sector, yet it is much less leveraged than all the banks, and has virtually no expsoure to residential subprime loans. It has been victimized by naked short sellers and those who just don't understand its business model. Some will now think that the nearly 20% dividend is too good to be true, but this company is extremely well-managed, and made provisions for a recession early in 2007. They have already said that they have enough cash to maintain the current dividend through the end of 2009. I fully expect this to be one of my best picks in CAPS, in spite of its fall since my original pick. In fact, I have since put my money where my mouth is, and am still accumulating shares at the sub-$20 level whenever I can get my hands on some cash.
I fully agreed with junkopadna and am accumulating in the low 20's to average down my original purchase at 31.69.
Why oh why are you fooled by this fake dividend policy??!?!Your going to lose all your money when this ponzi scheme comes crashing down!
Fake dividend? Yeah, and I guess those were fake dollars deposited into my account on the last dividend date? The simple fact is that this company is well-positioned not only to survive the current credit and banking crises, but to do well, by taking advantage of the opportunities created by them. They have a diversified portfolio of companies. They just sold two of them at a solid profit, furnishing more cash for reinvesting and paying out the dividend. They are required by law to pay out 90% or more of their profits. People keep trying to call into question the sustainability of the dividend because it seems too good to be true. The only reason that it's so high is because the stock price has fallen so much. The only reason the stock price has fallen is because it is lumped in with all the other financial companies with irresponsible managements who are much more highly leveraged and have questionable investments in things like sub-prime mortgage-backed securities. ACAS management just keeps reaffirming the dividend and pointing out that they have already set aside the cash from which the dividend will be paid well into 2009.