alambrose

Talk Me Down From the Wells Fargo Ledge

what about USB, isnt there a "favored five"?

American Capital Q2 2008 Earnings Update

I think the weakness in ACAS share price is primarily attibutable to a few factors: 1) Overall decline in the broader market along with a substantial decline in the financial sector, and a misclassification of ACAS (and BDC's in general) as financial sector companies. 2) Negative sentiment aimed at the BDC sector by short interests; eg David Einhorn and his attempts to bring down ALD. Even Cramer states on national TV to avoid ACAS because it is under 'bear attack' and he is not a fan of mezzanine lending. 3) A broad and deep misunderstanding by the general public of how BDC's operate and make money.

The combination of the above three conditions make it particularly attractive for the 'distort & short' crew to attempt to drive share price lower with a concerted smear campaign. All one has to do is look at the short interest and the days that ACAS been on the REG SHO list to see what is really going on here. There have been some encouraging signs as of late with Cox's statements that broad-based-rules will be enacted to prevent the criminal activity of naked short sellers attempts to bring down companies like ACAS. If this happens any time soon, watch for a strong rebound in ACAS share price. However, there is also the caveat that overall market conditions may continue to deteriorate and ACAS will linger at current price levels for an extended period. But with a fairly solid 20% return almost guaranteed for the forseeable, could you really classify making a long-term investment in ACAS at current price levels 'dead money'??? I don't think so, and I have put my money where my mouth is.