Stifel, Nicolaus & Company, Inc. Greg Mason, CFA Troy Ward Jonathan Bock, CFA
June 10, 2010
"We believe deep value-oriented investors would be better served investing in Buy-rated MCGC ($4.88) which is trading at a similar stock price and valuation (P/BV) to ACAS; however MCGC does not have to de-lever its balance sheet, is positioned to invest a significant amount of cash into new investments, recently re-established its dividend and is expected to generate a meaningfully higher NOI/share over the next several years versus ACAS. We believe the upside potential in MCGC is meaningfully higher than ACAS over the next two years and is currently paying a 9% dividend yield that will rise as it grows its portfolio over the next several quarters."
They may have the most air time with Reuters..but they blew the call on ACAS and had to backpedal. If you want a compelling growth story with the chance of significant gains via nav write ups and portfolio exits....ACAS right now is a buy. You dont see Paulson buying 15% of MCGC. MCGC is paying divvy they will have problems supporting.... and is miniscule compared to ACAS. It is retirees.