American Capital running out of stock


American Capital (ACAS) repurchased about 13.4M shares of company stock in Q3, 4.6% of the June 30 float. The shares were purchased at an average price of $13.11 each for a total cost of about $175.5M. June 30 book value per share was $19.28.

In two years, the company has bought back 24.3% of its stock at an average price of $11.02 each. The buybacks at well underneath book value have been accretive to the tune of $1.40 per share. Put another way, the company would have had to earn another $405M to have produced the same increase in NAV. Total operating income for the year ending June 30 was $338M.

The stock's about a double since October 1, 2011.

Comments (3)
  • Mike Maher
    , contributor
    Comments (2860) | Send Message
     
    Great stuff, stay long, when this finally starts paying a dividend again its going to be a double digit yield.
    26 Sep 2013, 04:52 PM Reply Like
  • taxman100
    , contributor
    Comments (551) | Send Message
     
    I have this in my Roth IRA - and it has been a good performer
    26 Sep 2013, 10:34 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11069) | Send Message
     
    (ACAS) is one of my fastest growing holdings JUST for this reason. The float shrinkage below TBV + the future dividend growth at a deep discount to EBIT is a slam dunk.

     

    I don't know what could go wrong...
    28 Sep 2013, 06:50 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs