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American Capital, Ltd. Message Board

  • stucknposition stucknposition Apr 19, 2010 3:47 PM Flag

    In the details come questions

    Reading the details ACAS only showed Paulson results thru 12/2009. If the first quarter 2010 is going to be so much better, why not show them? or why not wait till the results are out--in just a few weeks? It results much better, then stock goes higher and less dilution or money raised.

    Could ACAS been out of money and had to rush this? Just seems strange that their results will be out in just a few weeks and if you believe better, the stock would be higher. A few weeks could not have made that much of a difference given they had until then end of May to resolve the debt issues.


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    • So many people try and over think what happened today. And where ACAS is going. Paulson would not have purchased all this stock if he didn't truly believe there will be money to be made. He didn't just buy stock in ACAS. He bought stock in every company ACAS has in it's portfolio. As long as the economy continues to improve. It isn't possible that the NAV won't increase. That exists won't continue to be at reasonable and increasing values. Why would they not.

      ACAS is only in this current situation because of the near depression situation we went through. ALL asset prices in ALL sectors in ALL types of businesses fell through the floor. ACAS is a company of companies. Did anyones stock portfolio not take a hugh hit in the last 18 months? Regardless of how diversified it was. But has it not at least started to come back as the economy has improved?

      Paulson is simply stepping in at the most opportune time. He didn't just wake up one day last week and decide to buy 13% of ACAS. The only thing he probably didn't anticipate was last weeks news about Goldman Sachs. I personally believe ACAS is a lot smarter and insightful than anyone they deal with. And I know that they are just chopping at the bit to get back in business. Considering all of the opportunities that I'm sure are still out there for them to get involved in. JMHO.

    • With the junk market up dramatically in the first quarter, it is likely ACAS will have to significantly write up it's investments look for the NAV to increase

    • you too. IMHO BBBud

    • Good luck my friend.

    • I think it's a bird in the hand situation. It's legally harder (though by no means impossible) for them to disclose nonpublic info to Paulson before the Q; they also likely don't have finalized financials to show.

      Also, it often takes a while to hash out deal details; if they had a handshake deal and said let's get down to brass tacks after the Q, Paulson would have a huge bargaining chip as time ran out, regardless of the results.

      I agree that they could have perhaps gotten something better but this is a near-market deal for a very large block of stock; compare it (though of course not apples to apples) to the deal GNV just announced and it doesn't look so bad. That Paulson didn't demand truly onerous terms speaks of an eagerness on both parties parts to do this deal, which I think speaks well to it.

      • 2 Replies to aharonlevy
      • ACAS showed a desperation for money. Closes a deal just weeks away from potentially announcing better results. If they had a deal based on December results, they could have said.."lets wait a few weeks and reprice with the new results..." If Paulson thought it was a good deal, they would have waited.

        JMHO----cash was running very low.

      • Good timing on ACAS stand point. Stocks closed at $5.33 yesterday. So the $5.06 does not seem as big a difference as if it was selling for $6.00. IMO this deal did not just evolve over night. I would expect that Paulson could not buy for less than $5 and the stock has only been over this amount for a few weeks. I sure hate to have been the party that sold out at $5.21 in the pre-market.

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