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American Capital, Ltd. Message Board

  • zeit0001 zeit0001 Aug 7, 2014 11:45 AM Flag

    ACAS Future

    "....of return and retain it so we have a larger fee, string fee asset manager and a bigger pool of capital to potentially distribute out to the shareholders." This appears as if divies are coming- at some point.
    - They speak of future CLO's coming - maybe forever is my thinking.
    - They speak of $750m of leverage- perhaps this will be what keeps CLO's coming.
    - The time line for spin-off etc. is disappointing, longer than thought but ACAS's growth while waiting will be impressive. imho.

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    • I have not gleaned through the CC. That being said I comfortable to say ACAS is frustrating slow. I am glad I am an investor in ACAS they way that I am. I have traded my way into owning ACAS and have been hoping for a good turn. During the 2-12 I traded and held back some shares so I have retained my holdings as free shares. I think since about 12's I have only felt comfortable making about two trades one of which I retained no shares. I really thought ACAS would do better, behave better and react with greater care for its constituent share holders. I do not know that I care at all for ACAS' management right now. I understand they have super complex issues way above my pay grade but this has been going on for two years, i think(it seams longer).

      We are no long RIC because we cannot take advantage of our losses.
      We are not doing dividends because we want to recover losses.
      We are not doing dividends because we are doing share buy backs.
      Share buy backs stop and they say we are not doing dividend because we are planning a restructuring.
      We are not going to do dividends until after we split (which right now is somewhat in doubt).

      They built this business one way and sold it to shareholders that way (a RIC BDC). Made some rather large mistakes which almost destroyed the business. ACAS says someday they will do something for the shareholders but CC after CC they jink into something else. ACAS appears in good shape they just do not have a plan to address shareholders as to raise value or produce a dividend only they say more information will be coming.

      Now so far ACAS has done OK to share holders if you ignore the drop 2008.

      They cannot Jink forever.

      • 3 Replies to jeffy777
      • blair.wagner Aug 7, 2014 5:04 PM Flag

        If one were a betting person,would bet that next quarter they will have another "plan"

        Sentiment: Sell

      • Jeffy, I sometimes fear the unknown. But, we are talking about stocks, and I never know as much as I think I do. At some point, I have to let go and continue onward. I am convinced that Malon and the company can run a conventional BDC/RIC in a very good manner ie. precrash ACAS. Therefore, they are trying to build something that will make as much money as before or close. I think more money will be made. But, the aim is to make it a lot safer. A normal BDC is often to complex to follow with several normal companies, but a BDC/asset manager with several BDC's that own a bunch of normal companies. Also, the BDC/asset manager owns normal companies as well. I can't even describe it much less follow it in meaningful manner. Malon and the company were the smartest guys in the room before, and I remain a true believer. Keep the faith!!! ACAS knows what it is doing and it will pay to keep adding shares through trading or whatever works for you. imho

      • Many of us are feeling the same frustrations you are. But now that management has provided the timeframe for a Board approval it's my belief that the SP will gradually move up to near NAV in anticipation. During the CC they stated that they expect improvement in NOI which will also assist in the SP movement. So from a capital gain perspective the prospects for $20 per share is within the realm of possibility. Waiting to hear NMB's take. JMHO

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