Well at least we can pinpoint a reason for the drop. I think Zacks is on spot about ACAS having limited income. The only income growth has been basically from the Reit Fees (AGNC and MTGE). I don't expect they'll be doing any SPO's anytime soon with the adversity in that sector lingering. And increase in NAV doesn't mean squat to Zacks as it wasn't even mentioned in the downgrade. And most of the increases in NAV have been through unrealized capital losses. And I gotta believe they are drying up. Let's hope that the rumored spinoff and resumption of some sort of dividend is around the corner.
Never found Zacks to be that reliable, have you?
Do know that volatility of this stock has and is making ACAS a trader's dream stock.
Would think that all the buy backs should be reducing the shares outstanding and there by making
the per share earnings larger. At this time am disappointed with performance but still a believer.
Had a bit of a hard time with the way they justified the down grade saying their income was limited to Dividends and Interest. Ummm, this is a BDC right? What were they expecting? Revenue from the sales of consumer goods?
I am not of the opinion that we are in any dire situation as pertaining to ACAS. I truly believe it will slowly at times and more rapidly at other times continue to grow. ACAS like all BDCs will have some yield compression as or if rates go up. ACAS having a good deal of equity should be helped there. I would not mind if it dropped a couple of dollars in panic selling though, I would do some crazy buying. ACASs debt position is I believe is good as compared to its peers so as financing tightens it should be a benefactor.
AGNC and MTGE are not helpful at this time, but I do not see them as being destructive. If you took the value they add to ACAS out of the business ACAS is still well undervalued.
All this is my opinion I know your opinion is also well founded.
Good luck to you.
One question...why now?? Based on the first quarter results that were reported on April 30?? That's a bit of a delay.
I've been holding off adding to my position, waiting for the stock to continue slide. I have a price point somewhere south of here....
With Out The Div Or Announcemet Of One Coming My Guess It Will Be Heading Down [ Maybe Its The Time To Short ] If ACAS Doesn,t Do Some Damage Control ACAS May Go Into A Spiral. Now The Question I Have Is Why Didn,t The Hot Shot s On This Board See It Coming. Could They Just Be Pumppers Like All The Other Boards. Just A Thought.
I may be considered a pumper in the sense I am still a believer though I have not significant interest in pumping as you say.
It is true ACAS has some issues. But so does the whole BDC industry. It is my feeling, and probably not yours, that ACAS is still in a recovery and because its share price is significantly less than NAV and NAV is truly growing and that is respective possible business opportunity losses. Additionally I feel that as interest rates go up and financing needs go unmet ACAS will be in a good position to seize the opportunities and some other BDCs will have to deal with yields costs unfortunately compressing their revenues in a greater way than ACAS. If ACAS goes down I will continue to buy in my meager way. I see no reason bases on the Zacks Downgrade to change my mind. I agree ACAS has challenges, I believe it is working through these challenges.
Good luck to you.