AHC announced that it entered into a "non-binding" agreement to sell the Riverside, CA property for $30 million or around $25 million after tax and moving expenses. This was quicker than my base case assumed, which is a positive.
As important was management's comments that appear to show more flexibility in the amount over statutory requirements they will contribute to the pension plan. The 10K and 10Q indicated they intended to contribute between $7 and $21 million in 2013. Management had previously said they would contribute close to the $21 million. My base case assumed $21 million so, again, there is upside to the thesis if management contributes less. This would mean most likely a higher dividend payment.
All in all the numbers where satisfactory even without any real improvement in them. The thesis is intact and in fact is ahead of schedule. The negative stock price reaction was puzzling, but did allow me to increase my position.
Disclosure: I am long AHC.