jjason

Lehman Brothers Take-over: Implications for Financials

I don't know what LFI means either.

I do know some helpful ratios and statistics like: book value, tangible book value, debt to equity, total debt to equity, return on assets, return on investment, gross margin, net margin, dividend yield, etc. They are all important to understand. All of this data must be taken into account...as well as the valuation of the underlying assets on the balance sheet and the liabilities before making an investment decision.

I am only familiar with ACAS and I do believe Malon Wilkes when he said that FAS157 has resulted in the decrease in asset values and that without a market for these assets they are hard to value but since these assets will be held to maturity, ACAS will get their money back.

I trust he is right. ACAS has a total debt to equity ratio of less than one and is selling for less than tangible book value ( ACAS has no goodwill or intangible assets on the balance sheet ).

Long ACAS, no other positions, no short selling at all ( I think short selling should be made illegal ).

Re-examining My American Capital Strategies Position

Thanks for the article Davy....and thanks to all the commentators too.

I am long ACAS. I track ALD,ACAS,MCGC, AINV,etc. and all are down. On my yahoo screen for banks, well you probably know how the bank stocks are doing. I did some research on July 24 on CNBC's website. Here is some data:

Stock last mo. YTD 12 mos ( D is for down, #'s are % )

ALD D 12.9 D35.7 D53.4
ACAS D 22.2 D36.0 D51.6
CNS D18.4 D18.4 D38.5
GLAD D13.6 D12.5 D29.9
MCGC D5.7 D65.5 D74.8
PSEC D13.3 D3.4 D30.6

I do not know much about CNS, GLAD or PSEC. I do own MCGC.

I figure that I will just wait it out on ACAS. There is a lot of naked short selling in ACAS and this has an affect the share price. Shorts scare people. I do not believe that short sellers know more about ACAS then we shareholders do.

But short sellers and naked short sellers do effect the share price because the average investor follows trends, talking heads and momentum strategies.

I have confidence in Malon Wilkes and his people. I think things will get better in the next two years.

Naked Shorted Stocks

Thank you for the article, Bespoke. Do you know a law firm that has the experience to investigate who is responsible for the naked short selling?

Can the firms and individuals that are involved in naked short selling be sued by shareholders who have lost money because of the naked short selling?

Review of Current Losing Positions: NZT, ACAS, SKM, GE

Charles, ACAS has some advantages over other companies like:

1. No intangible assets.

2. A very good Yield.

3. ACAS is selling below book value.

4. Recently (because of FAS 157 ) assets were written down. These assets will be held to maturity so, at maturity, these assets will be written up.

5. The total debt to equity ratio is, by law, always less than 1 to 1.
This means that ACAS is not overleveraged.


6. ACAS is well managed.

I have no idea what David Einhorn said in his book. If I could write laws, I would make hedge funds and short selling illegal.

Finally, Charles, you make statements about ACAS without any data. I find this unacceptable.

If you actually know something about ACAS that is detrimental then please share it with us.

Long ACAS

Dividend Yields Soar

I agree with Rapidbenz. ACAS is a well run company. I would also like to add that a BDC must have a total debt to equity ratio of less than 1 to 1. This means that ACAS is not highly leveraged. Also, ACAS has no goodwill or intangible assets on the balance sheet. Finally, ACAS has a stock buyback program and Malon Wilkes has said that a stock price below $25.00 is when ACAS may begin buying back shares.

At the current price, I think ACAS is a bargain.

Long ACAS

Hershey's House of Pain - Cramer's Lightning Round (6/19/08)

I don't like Cramer either. His show is just entertainment ( if you like his kind of entertainment ). I don't watch his show.

I disagree about cramers's view of ACAS. First, ACAS has a debt to total equity ratio less than 1. The dividend is now $1.04 per share per quarter and secure through 2009. Tangible book value is $28.16. The company is well managed.

I would rather own ACAS than some of the homebuilders, I-Banks and the banking industry in general. I have made money in ACAS over the past three years.

Long ACAS

American Capital Strategies Illustrates Private Equity Risks in Merisel Pull Out

Thomas, You seem to have a little bit of knowledge of ACAS's strategy and from that knowledge you suppose you know more than Malon Wilkes ( CEO of ACAS ). I disagree with your premise that a poor quarter is not significant. A poor quarter can knock down the market price of a companies stock.

I would wonder why, after the news about not buying MSEL.PK, the share price dropped? What's MSEL.Pk worth?

Anyway, I'll leave it up to the folks at ACAS to decide what is best for us shareholders.

Long ACAS.

Hedging Your Bet With American Capital Strategies

To Carried Interest... I have to say to you that your post lacks data to back up what you have said. Your post is similar to posts on Yahoo message boards. The majority of posts on Yahoo message boards are not worth reading. (which is why I read and post on S/A)

If you do have data to back up your statements, then please post it.

Davy Bui takes the time to write articles that keep us informed.

Thanks Davy.

No position in ACAS.