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American Capital, Ltd. Message Board

  • turkeyknob turkeyknob Sep 4, 2001 2:11 PM Flag

    Questions please: ALD, ACAS & GLAD

    Anyone here have an opinion as to why ACAS is acting so much better than ALD. At these levels, is ACAS at the end of its run?

    Also, can anyone guess how long it may be before Glad starts paying a dividend?


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    • Apparently there was another secondary today, 1.8 mil shares at 8.25. I guess they're getting all the equity capital they can while the price is up. Since this will raise the book value of the company and raise the working capital I would suspect this will be good for long term investors.


    • Kooks to me like we have some heavy institutional selling going on.

    • As per GLAD's SEC filings, it intends to declare its first dividend 90 days after its IPO (last week of November). Since GLAD will keep its $$$ in money market accounts till it lends out the money, GLAD will not have large earnings to make more than a nominal div payment this year. The dividend should ramp up nicely over the next 18 months. GLAD's quiet period will be over in around 15 days, after which we can expect press releases about the 57 MM in loan commitments it has to 5 different companies

    • Turkey,

      In response to when GLAD might begin to pay a dividend, I looked back at ACAS which first traded on Sep 2, 1997 and paid it's first dividend in Mar of 1998. It looks like it took about 6 months. It would seem reasonable that GLAD would follow something similiar.

      I have another question for anyone who has been around since the beginning. What was ACAS's IPO price?


      • 1 Reply to VJKRaleigh
      • Here's a quick summary of ACAS IPO, SPO and Dividend History. As a shareholder of ACAS & GLAD (and ALD), it will be interesting to see if GLAD grows in a similar fashion to ACAS.

        8/29/97: ACAS IPO, $15/share, 9.122M shares
        11/6/97: 1st dividend declared $0.21/share
        1Q98: dividend $0.25/share
        5/14/98: dividend $0.29/share (6/23, 6/30) (ex-div,div)
        7/31/98: $0.32/share (9/18, 9/30)
        10/30/98: $0.37/share (12/21, 12/31) 7.4% yield
        12/21/98: extra dividend $0.11/share
        1/29/99: $0.41/share (3/24, 3/31)
        5/6/99: $0.43/share (6/21, 6/30)
        8/9/99: 1st secondary 5M shares @ $17/share
        8/12/99: $0.43/share (8/23, 10/1)
        9/9/99: SPO overallotment exercised: 605K shares
        10/28/99: $0.44/share (12/15, 12/31) 8.8% yield
        4Q99: extra dividend $0.03/share
        1/27/00: $0.45/share (3/15, 3/31)
        5/3/00: $0.49/share (5/17, 6/30)
        5/22/00: 2nd secondary 5.5M shares @$20.50/share
        7/27/00: $0.49/share (9/15, 10/2)
        10/27/00: $0.52/share (12/12, 12/28)
        12/6/00: extra dividend $0.22/share (12/29, 1/16/01)
        1/24/01: $0.53/share (3/15, 3/30)
        5/9/01: $0.55/share (6/1, 6/29)
        6/26/01: 3rd secondary 4.5M shares @ $25.50/share
        7/26/01: $0.56/share (9/12, 10/1)

        We can hope that GLAD will perform as well over the next several years as ACAS has in the past four.

        With Respect,

        Jim B.

    • All depends on your time frame. 1 year performance ALD wins. 2 year ACAS wins. Yield for both close. I think each one is subject to news stories about the fortunes of their underlying investments. This to me is what has affected the short term price levels so that one looks to be performing better than the other. My medium term objective is to build a large position in both of these companies => 25% of my portfolio. No guess on GLAD.

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