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American Capital, Ltd. Message Board

  • its_not_my_business_but its_not_my_business_but Oct 1, 2013 11:08 AM Flag

    Wow, an actual thoughtful article from "Fool"

    I'm sure the fella will get sacked immediately if not sooner.

    I don't agree with all his conclusions, but he actually did some research to understand what is going on.

    Knock me over with a feather.


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    • Its_not_my_business_but,

      How about a formal introduction? I'm _that_ writer. Your post prompted me to make an introduction and reach out to the community here.

      So, ACAS isn't the easiest BDC to understand. It's weird - no dividends, plenty of buybacks, tons of equity instead of debt. But I can also say that I've followed the story closely, and for awhile I was also a shareholder. I know it pretty well. I think BDCs are a rising asset class and will be for some time. I like following them for that reason.

      Now, I don't think The Motley Fool will sack me for having an opinion. Let's hope not, anyway. It's not The Motley Fool's goal to move markets, spread misinformation, or pump or dump stocks. Yeah - it's almost hard to believe with so many people saying that is a writer's goal. But seriously, TMF requires a writer to disclose what stocks the author or TMF own in every article.

      I'll continue to write about the ACAS story because I think it's interesting. And I expect you to hold me to a standard of clarity and accuracy, because that's what I expect when I read an article. I don't want us to always come to the same conclusions, but I do want to make sure we're evaluating the same facts.

      Thanks for reading. I'll probably pop in here more often to discuss all things ACAS when I have the time.

      Here's to bull markets and big profits!


      • 6 Replies to tmfvaluemagnet
      • TMF ...

        First welcome to our little band on the Yahoo ACAS forum. I think you will find that this is probably the BEST Yahoo stock message board .. period. There are several very knowledgeable folk here that offer different takes and for the most part we've chased-away or outlasted the village idiots and spammers, so what's left is respectful and informative discourse. Your input and info is very welcome.

        My comment about Fool is this. The articles about ACAS and other stocks are usually only regurgitation of press releases and void of any real understanding of what's going on under the hood. I've looked at Fool articles for many, many years and I don't think they are pumpers or dumpers .. I think they are mostly ignorant and only about generating traffic for Fool and that many times people put titles on the articles so that an investor can't resist but read it.

        I would suggest that your caliber of understanding and writing is more suited to "Seeking Alpha" and not "Fool".

        So, to the meat of your very good article. We just had a recent conversation on this board regarding the debt burden and valuation of the portfolio and my point is (was) that it doesn't serve much to look at that as you did because many of that debt is to ACAS itself. It's a sort'a double accounting. But to your point about the financial consolidation and the clarity it will provide, I agree 100% and that's the way to do it .. either roll the financials up or not at all .. because IMO doing just one side of the balance sheet provides a distorted story.

        On value and opaqueness, in this instance one can only test ACAS's ability to accurately value the portfolio based upon comparing past sales vs valuations .. and it would be hard to argue over the many, many years in vastly varying financial environments, that ACAS's model has proven anything but as good as anyone could expect or hope for. Those valuations take into consideration the debt/leverage that you called into question.


      • tmfvaluemagnet:

        My impression on your article is similar to what has been expressed by others here. Most if not all, of the earlier ACAS related articles gave me the impression that the authors were either seriously uninformed or just biased. This is certainly true for articles related to some other companies I invested in or followed. I read or scan through them all, just to learn about the different views related to companies I am interested in.

        I noticed that near the end of your article it is stated that you are a TMF "contributor." I am just curious. If you are a contributor, then you are a writer who publishes your articles on TMF site but you are not officially affiliated with TMF (as a staff member, or analyst or senior analyst). Is this right? If yes, you can submit your articles for publication anywhere you want. There is not an issue of being "sacked" by TMF.

      • Thanks for weighing in. Well thought-out posts are very appreciated.

      • TMFValueMagnet,

        I cannot speak for NMB. But there is a frustration on financial reporting because it seems... emotional... it does not often look at the company it looks at a feeling and very often it is stale or out dated. My dad used to joke he could tell the weather through his weather rope, if it was wet it is raining. So often we we read stuff filled with emotional response to historical events and not where a company is and the possibility of where it could go against a derived understand of managements ability to achieve.

        I thought it was a great article. It was fair and showed accurately issues that face and hold ACAS back.


      • tmfvaluemagnet:

        Thanks for the TMF article and for stopping by. Most of us here just want an honest assessment of the facts of the ACAS story, not a rosy validation of our decision to own the stock. Come by any time with thoughts & opinions.


      • Thanks NMB. I like your writing style, keep up the good work!

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