They mention ACAS in an article regarding buybacks .. without any discussion of the discount to BV or the changing to c-corp to take advantage of carried-forward losses.
The entire rationale for the buyback was missed.
Amazing that they call that "analysis".
>> While management has done a great job restructuring the debt and improving liquidity, the underlying business fundamentals have been sluggish since PPS peaked last May.
Yes and that should be expected. ACAS has ...
1) deleveraged .. thus there are less $'s/share working for income
2) high money costs .. thus cutting into NOI and making them less competitive on new deals
3) realizations ... as ACAS realizes its loan-assets that decreases NOI. The only way to combat that is either (a) roll those funds into new loans or (b) buyback shares (and with their money costs up, the buybacks have been a good place to "roll" the money into).
I'd say we're still in the last 1/3rd of ActII. We need that bond-debt gone and a refi before the curtain falls on ActII.
I believe if you have listened to past CC's, the company has admitted in Q&A's being caught on the short end with their portfolio during the last problematic recession which caused the dramatic downfall in NAV and ensuing default. They also said that they learned what they needed to do to rebuild their portfolio structure so they can dramatically improve weathering future recessions, including ones of the prior magnitude. And I believe some of the specifics on restructuring you mentioned are incorporated in their future plans for structuring borrowing, etc. NMB can probably provide more specifics.
The best ongoing analysis of ACAS I have read is The Jaded Consumer blog. Very accurate, unbiased and insightful. He writes about ACAS about once a month, probably wont write again until earnings are announced.
He analyzes facts, not the dribble we often see on this message board.
Why Rick Smith's, alias TMFDitty, posting is worthy of being "linked" to MF site, is the desperate play of a web publication trying to become relevant.
It is all about the tag line to bring in curiosity. Mr. Smiths responded as TMFDitty to various user posts. He more or less attacks the value behind buying shares with out looking at the wisdom behind the move. This has the feel of a political attack ad, full of rhetoric and short on substance.