Jaded Consumer
Long only, long/short equity, value, special situations

Some Math On ACAS' Capital Returns

Background: The Buyback Program

American Capital Ltd. (NASDAQ:ACAS) evokes strong emotions in those who experienced its collapse as investors in the meltdown that began in 2008. This article doesn't look at pre-2008 metrics to assess whether some past Golden Age has returned to American Capital Ltd., but assesses at metrics from the period of its current dividend-and-share-buyback policy to determine whether management's strategy involving capital returns are working for shareholders or against them.

Prior to the collapse of 2008, ACAS touted its dividend as a major reason to invest. The company's web page continues to laud the $30.32 paid to shareholders as evidence of management's success. A frequent criticism in comments to articles about ACAS is that the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details