Needed to listen to conference call.
ACAS flat out said that losses on CDOs and related derivitive products are of no consequence because all monies being collected.
Its just valuation issue for that and the valuation adjustment to ECAS has been long expected and priced in.
ACAS up today because markets are sensing that ACAS will be a big winner in this cycle.
...And your point is?
Some of the biggest PPS gains for ACAS and similar stocks have come after the company had earnings that were less than expected. You're using the wrong metric to evaluate BDCs. If you don't understand this I suggest you find a nice S&P fund to invest in grandpa short. ....And if you are frightened that ACAS will have to cut their dividend, tell me when was the last time they had to do this. I'm certain ACAS has gone through at least a few recessionary periods in their history.
"Net operating income increased 54 percent to $174 million, or 90 cents per share, from $113 million, or 76 cents per share, a year ago. Analysts, who track this metric, expected net operating income of 81 cents per share."
Is that clear enough for you. All shorts can go f' themselves now, or post your addresses and the righteous can take out the trash.
CSE should report even a greater variance since they lever up their balance sheet 3x more than a BDC. On the ACAS CC Malon said that their spread widened in the quarter not only on the top line (spreads on money lent went up) but also the botom line (libor rates droped on money they borrowed). He expects 2008 to reflect even more of this. It was some positive CC on what is going on in the middle market.
- 2007 NOI increased 9% on the year from full year 2006
- Q108 NOI reported to be 0.73-0.78 per share
- Q108 dividend of $1.01 declared
- 2008 full year dividend forecast to be $4.19 / share, a 13% INCREASE from last year
Per press release:
The Bethesda, Md., company increased the dividend for the first quarter to $1.01 from 89 cents, payable April 1 to shareholders of record March 7.
Up 1.84%. Key will market reaction after 11.am. CC.