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American Capital, Ltd. Message Board

  • huntleypalmer2003 huntleypalmer2003 Apr 22, 2008 10:15 AM Flag

    Heparin Scare

    The news today that batches of contaminated Heparin cause allergic reactions resulting in over 100 deaths has by the FDA been possibly linked to Scientific Protein Labs. This company is majority owned by ACAS. On top of downgrades this news is causing much grief for the stock.

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    • "There oughta be some lawyers on the board ..."

      You mean Nunthia, Loco.numbnuts and Mecca aren't the bottom of the barrel here? Someone let lawyers in???

    • Hey guys, I'm going to post one more thing to vent and then go away. I am not a short and have always admired ACAS. But yesterday the FDA actually issued a formal warning to SPL that their manufacturing processes were not adequate to filter out impurities that killed many people. This is not a rehash of old news--in fact, this was the first time it really was news, i.e., on the first page of Yahoo for many hours. I don't think anyone who knows how liability follows pharma can argue that this is not a huge additional burden of risk. Insurance and LLC structures are not going to shield the portfolio entirely. This is a double whammy of medical harm and Chinese manufacturing which I wish I had done better DD on. If ACAS has to set aside additional reserves for potential liability on this, it could be the last straw. I sincerely hope everyone does well here (longs) with a prompt resolution and I wish you great luck (I certainly didn't have much although enjoyed the dividend for 1.5 yrs).

    • "The typical chondrotin sulfate with or w/out glucosamine has been used as an unregulated, but medically accepted, arthitis treatment ...- "over-sulfated chrondroitin" - has never been used on or off label. ...this contaminant is responsible for the adverse events. "

      Let's give some to Nunthia and see what happens.

    • "What exactly are you saying? Noting! "

      You're taking notes?

    • ACAS owns 87% of SPL. I'm going to ASSume that this drop is related to the old news being rehashed about SPL. Could be an excellent entry point as the company has already reaffirmed at least 2 more quarters of dividends (as carryover from last year), NOT including this years earnings.

    • Scientific Protein is an LLC. There oughta be some lawyers on the board who can give us a sense of how liability is limited (or not) in an LLC.

    • I will bet we have product liability insurance that greatly reduces the loss

    • the call volume to IR is so heavy that it would take weeks to find out information.

    • OMG this is taking the risk profile beyond my tolerance. First Geosign, now this, which is 10 times worse. What if Baxter sues SPL and ACAS? I hate to say it but I've lost faith. Sorry, my perspective has been nothing can bring this company down, but this could literally bring it all the way down. Hope I can buy back in later.

    • I have always found it hard to quantify emotional behavior, of which this market is chock full. Rather than trying to guess the next low, I usually try to average back in gradually, adding fewer shares initially and more shares if the price declines further.

      As long as the combined basis is less than my original sale, I'm ahead of the game.

      (Apology accepted and appreciated.)

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17.11+0.08(+0.47%)Oct 25 4:00 PMEDT