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American Capital, Ltd. Message Board

  • bg4value bg4value May 1, 2013 9:40 AM Flag

    Think the boys'll be a little late starting the cc, what with having to buy back

    the shares this morning. Seems to me the only volume we've had on acas in the last year has been when mngmt has been buying back. Anyhoo, thanks NMB for pointing out the lower NOI reasoning but as most of us here are aware, this is a NAV story only.......not div, not earnings. It's a company with a remarkable balance sheet (paid down more debt this Q and still loads of cash sitting there). I stopped trading this many dollars ago and am holding.

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    • Yeah, good one on buy back the shares this morning. I went into my son's account and bought him 1500 at 14.36

    • I think you are spot on. It is a NAV story. I think management still recalls those frightening days in 2009 that they are more focused over the balance sheet first. This is a capital appreciation story. There are other BDCs for yield, like ARCC, AINV, PSEC etc.

      • 2 Replies to awallejr
      • I remember 6 six years back when NAV was 31 'ish' ,pre- 2008 and $45 per share. At that time the shares outstanding were approximately 175-180 million. Subtracting 120 million shares or roughly 40% of the outstanding shares today to reflect the quantity then would put NAV in $26 dollar range with far less debt, and a much broader NOI scope than in the past. ACAS is a much more substantial company company today. The mark to market valuations, I believe have forced that to happen. They use to evaluate in future terms which led to the massive write downs with M to M. The divvy back in 2007 was around 3.75 that year. Subtract that by 40% and we are at 2.25 ( .74 per quarter), not very unrealistic with NOI and capital gains. Secondary IPO's were the norm for years, that seems unnecessary today , but at the average buyback price over the last 2 years they took advantage of reduced pricing for future IPO's if needed.

        ACAS is on a better foundation.

      • I remember an article a while back comparing ACAS to a mini Berkshire H. Personally, I would rather see that than to become a steady div payer. There are plenty of div payers out there now.
        Heh, maybe that is what Wilkus is up to, keep the nav growing faster than the pps.

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