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cgm

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  • Bear Of The Day: American Capital [View article]
    This is based upon earnings of nearly 3 months ago. How about something more recent?
    Oct 16, 2013. 02:48 PM | 5 Likes Like |Link to Comment
  • American Capital: Is It Time To Get Out? [View article]
    Even the "New ACAS" has a total return in the middle of the group you selected. Also, by buying up shares, the NAV is increased, unlike paying dividends. Moreover, the dividends on REITs are taxed heavily. Not so with ACAS's reinvestment in its own shares. which have been a pretty good investment to date. Hopefully the higher non-accruals will stop going up and the debt service will improve. It appears three loans are most of the problem here. We'll have to see how it goes. At this point, however, I don't see any reason to sell. [Certainly we do not have to worry about dividend cuts. Ha, ha, ha.]
    Jul 31, 2013. 02:55 PM | 1 Like Like |Link to Comment
  • Buy The BDC With A Buyback Yield Of 13% [View article]
    I find it odd that ACAS continues to sell at such a discount. I guess the answer is largely that most BDC investors are looking for cash income, which ACAS does not provide. As you say, they do better reinvesting in buying up their own shares. I tell people that if they
    really need the cash income, they can always sell a portion of their holdings and pay taxes at capital gains rates (assuming they sell at a profit).
    Jul 1, 2013. 08:21 PM | Likes Like |Link to Comment
  • American Capital: Back In The Business-Building Business [View article]
    You wrote a good article and I agree with your conclusions. My onluy quibble is with your claim that ACAS threatened bankruptcy to secure new terms. They consistently stated that they would not file bankruptcy and their loan terms allowed them to continue, despite shrinking values for their assets so long as they continued to pay the loan payments, without their lenders having the ability to push them into bankruptcy.
    Jan 11, 2013. 05:56 PM | 2 Likes Like |Link to Comment
  • American Capital: The Buyback That Keeps Giving [View article]
    It's been grat ever since it bottomed during the Great Recession. I look forward to more gains as it climbs to approach its climbing NAV.
    Jan 6, 2013. 06:01 PM | 1 Like Like |Link to Comment
  • Normalcy Returning To American Capital [View article]
    Nice article. Unlike some articles I read about ACAS, you seem to understand the company and its potential.
    Sep 10, 2012. 05:48 PM | 4 Likes Like |Link to Comment
  • A Deeper Look At American Capital's Earnings Report [View article]
    I bought a bunch at $.99, so it's more than a 10-bagger for me. They don't need to pay a dividend if they can continualy increase NAV and use up their tax loss to avoid taxes for a while. It makes much more sense to buy back stock, which is what they are doing. They are doing all the right things. If someone wants income, they can either find another BDC or sell shares when they need income.
    Sep 5, 2012. 03:51 PM | 1 Like Like |Link to Comment
  • More Growth At American Capital Ltd. [View article]
    If one needs income but really likes ACAS, they can still buy ACAS and sell shares when income is needed, retaining the rest that is growing better than most income generating equities.
    Aug 10, 2012. 11:23 AM | 2 Likes Like |Link to Comment
  • American Capital's 40% Discount To Net Asset Value And Dividend Potential [View article]
    It would be foolish to pay a cash dividend, which is double taxed, rather than buy back stock at a 40% discount to NAV (which also raises the future NAV). They aren't perfect managers, but they aren't stupid either. Give them some credit, in that they held on and did not give the lenders equity and kept paying their loan payments until a deal was worked out, thereby keeping the company alive. The stock has gone fom $0.99 (when I bought a bunch of shares) to around $10, at 10-bagger, in less than 5 years. Eventually the NAV will be near the market price and they can switch back and pay a nice dividend. Meanwhile they are using theit capital loss carryforwards to shelter their gains and bujying back stock at a significant discount, with no taxes being paid by shareholders either.
    Aug 2, 2012. 12:02 PM | 3 Likes Like |Link to Comment
  • Understanding American Capital's Future [View article]
    Nice article. I am a long time holder of ACAS. Lost a lot in the crash (on paper), but kept the additional shares paid out and bought a boatload at $.99 near the low. Still holding then and enjoying the 900% gain and share buybacks while waiting for dividends to be restored if we ever get above book value again.
    Jul 23, 2012. 11:17 AM | 2 Likes Like |Link to Comment
  • Loving American Capital Before Valentine's Day [View article]
    Great article on a great company. Do you have any information on what actions they have taken to prevent another major price drop if we have another severe economic downturn?
    Feb 15, 2012. 12:42 PM | Likes Like |Link to Comment
  • American Capital Changes Course: Announces Buyback, Dividend Policies [View article]
    I have a large (for me) position in ACAS. I would like to see dividends on that position, but I think that it makes lots of sense to shelter their gains as a C corp before paying any dividends. It also makes lots of sense to buy in additional shares for less than NAV, thereby increasing the NAV per share. I agree that some who only want a dividendpaying BDC for the income it throws off may look elsewhere, but there are plenty of folks who like a company that continues to earn a good income and use it to gobble up undervalued shares.
    Sep 20, 2011. 03:32 PM | 2 Likes Like |Link to Comment
  • American Capital Poised to Break Out? [View article]
    ACAS was a great copany for years, but got crushed in the crash. I had belief in the management and bought a boatload at $.99 and got a nice stock dividend too. Made a lot of money. I can't sell now because I still see more upside, as it is selling for less than NAV, the NAV is growing, ande at some point the dividend, which I assume will start small and then grow, will begin again. I orignally like this stock for its dividends, but have now grown used to nice capital gains while waiting for future dividends. It's a great "hold" and still a decent "buy" as well.
    Jan 16, 2011. 01:37 PM | 2 Likes Like |Link to Comment
  • American Capital's Sale of Axygen Should Help Ailing Company [View article]
    I agree with stockmajor, except I believe that all (not most) of the creditors are unsecured.

    I doubt there will be a bankruptcy.

    ACAs has been disciplined in selling only for full value. This has resulted in full value offers, rather than a lot of vultures trying to pick them clean of good assets for bad prices. If they can adhere to this policy, they should come out of this recession in fine shape.

    I do think part of their problems have been the inflexible laws and regulations pertaining to BDCs and their accounting practices, that don't really take into account the kind of downturn the economy took over the past year or so.
    Sep 18, 2009. 01:01 PM | 1 Like Like |Link to Comment
  • S&P Downgrades American Capital [View article]
    I agree that there's no obvious news here. S&P is late to the ballgame. The creditors are all unsecured, so they have little leverage against a company whose managers plan to patiently sell only when they can get full value. Any settlement with lenders though would generate a lot of demand for the stock and probably drive the price up substantially.
    Aug 25, 2009. 02:09 PM | 1 Like Like |Link to Comment
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