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Ship Finance International Limited Message Board

  • keebon keebon Jun 19, 2013 6:41 PM Flag

    OT: ACAS

    feral, anyone...
    What's the deal with ACAS? Its fortunes seem to have turned.

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    • I agree with Mark. I seem to remember something about AGNC being the brainchild of ACAS. Sold my ACAS long ago when I despaired of seeing a dividend in a reasonable time. Business development companies are very opaque as almost all of what they do is with private companies. I prefer to hold them in FGB, a closed end fund dealing mostly in BDCs.

    • I think it's a confluence of several factors, none of which are (IMO) meaningful to the long term holder unless you must sell or can buy.

      1. "Sell in May..." Typical summer slump. Expected; I added ACAS (too early!) at $13.15.
      2. QE Weirdness affecting AGNC and MTGE. I don't know how to interpret this, really, but I see it as transitory. When the Fed announced the last QE program there was a lot of handwringing that the mREITs would be in trouble because now they had a deep-pocketed competitor for MBS paper MBS prices would go up. Now that Berneke is threatening to taper there's more handwringing. I added AGNC (too soon!).
      3. ACAS is "...a patient, long-term investor." ACAS has a vested interest in thier sp remaining low for the time being. They're making more money than they have good deals for, so they buy up a lot of their own shares. Because of this, I believe that they skillfully play the PR game with respect to if/when they issue a PR. They're quiet now, because the low share price suits them.

      If you have to sell now, sorry!

      OTOH, if you have the means to buy now (the price is below $12 as we speak...) you should consider doing so, as nothing has fundamentally changed.

    • I thought ACAS owned part of AGNC and MTGE. If so, both of those are getting killed.

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