David Allen

Re-examining My American Capital Strategies Position

We sold our common shares of ACAS several weeks ago. Once I am past the 31 day IRS period, I will be looking to possibly establishing a long position again. However, the return on the price is "too good to be true." And if it's "too good to be true" well, it usually is.

Management has stated it's intention of paying $4 in dividends during CY 2008. No mention has been made of changing the dividend, or even continuing it in 2009. If I thought that the dividend would NOT change, I would hold onto ACAS. However, I have found other good dividend payers that are INCREASING in value, and may give me a better return. Not only that, ACAS provides me a dandy tax write-off.