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American Capital, Ltd. Message Board

buyandwin 33 posts  |  Last Activity: Jul 11, 2016 6:09 PM Member since: Jul 30, 2000
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  • buyandwin buyandwin May 26, 2016 7:28 AM Flag

    I believe we all constantly re evaluate everyday the market is open. We either buy or sell or hold. All three of those options are decisions and re-evaluations all the time. Most of the time I do nothing but wait. That also is a re-evaluation.

    b&w

  • if you accept the fact that the ARCC deal is the best you will get from ACAS management, or question if you will even get this deal considering the history of the ACAS deals promised in the recent past you might want to sell 1000 ACAS and replace it with 1082 ARCC you will receive $411.16 dividend income on June 30. If you reinvest the quarterly dividends they will approximately equal the possible additional capital receieved if the merger goes through.

    In fact, replacing your ACAS shares with the dividend paying ARCC might be the correct move for many to consider.

    b&w

  • buyandwin buyandwin May 27, 2016 2:03 PM Flag

    Discoglo: I'm not talking arbitrage-I'm talking money. My situation is probably different than others. I own all my ACAS shares in IRA's . I bought and added shares before the 33% stock dividend in 20099 at rock bottom prices and on the way up.. My current cash average cost is $2.9597. However being in an IRA the current selling price is my taxable cost basis. That will be my basis when I take RMD's from my IRA's as I currently do.. I have no taxable event when I sell as long as the money remains in the IRA or I buy ARCC. Over the past 2 years I have sold about 75% of the shares I either bought or received in the 33% stock dividend of 2009. So I have received my money back a few times over, over the years since 2009. the numbers for me are compelling to lock in the exchange at or about current levels for ACAS and ARCC for the following reasons

    1) No taxable event to me on the exchange in the IRA
    2) Doing the exchange will start giving me dividends starting June 30, 2016 and not when and if they decide to consummate the merger.
    3) Exchanging all my ACAS shares for ARCC shares will give me about a 23.09% increase in total annual investment income I receive
    4) Currently I spend (including taxes) 43.36% of my income on living expenses and the 56.44% of my income is dripped and/or reinvested in additional shares.
    5) After I exchange my ACAS shares for ARCC shares I will spend approximately 35.23% of my investment income and will have about 64.77% investment income to drip and/or reinvest for income going forward.

    In that position my only concern would be the continuation of the income stream without interruption with no need for capital gains and the tax obligation that goes with monetizing those gains.

    good luck
    b&w

  • buyandwin buyandwin May 29, 2016 10:46 AM Flag

    ====, but if i did execute your strategy i think i would maybe only initially allocate a third or half so that I could add arcc in stages and possibly dollar cost average lower while still collecting that chubby 10% arcc divy. imho arcc needs to trade at 15.19 or higher to keep the 17.40 total at the merger vote date. so likely arcc likely goes up then maybe lower after the deal closes then up again hopefully with stable or increasing dividends. that would be my best case scenario. ====

    Everyone's situation is different and their goals are also different. I'm trying to monetize my ACAS position into recurring income. I mentioned a few posts back that my total ACAS position is in IRA's so there is no taxable event if I were to sell and/or buy ARCC. this merger deal AT CURRENT MARKET PRICES gives me the opportunity to buy 1.07847 shares of ARCC for each share of ACAS I currently own. 1.07847 X $1.52= $1.639 annual income for each ACAS share and that equals 55.377% annual income based on my current average cost of $2.9597 per ACAS share. I can start collecting this 55+% on June 30 on whatever shares have been purchased by me on or before June 12 (ARCC goes X-div June 13) Locking into the deal (for me) on these advantageous levels (for me) overrides the possibility of market instability Collecting the 3 $0.38 dividends (June 30 2016-Sept 30 2016 and Dec 31 2016) will give me $1.14 cash or even more shares that will crank out even more divvies if I drip the divvies while others are waiting for the deal to close.

    good luck
    b&w

  • buyandwin buyandwin May 29, 2016 12:18 PM Flag

    Forget what everyone has said so far. Those are all negotiating tactics To get to the settlement that will get the deal done on terms that everyone can live with and the combined company can make $B's of dollars going forward ALL THE NEGOTIATING PARTIES NEED EVERYONE ELSE AND THEIR SHAREHOLDERS and UNITHOLDERS all pulling the wagon together
    When everyone agrees to help pull the wagon by giving a little, a deal will be made. No matter what everyone here says or thinks THERE ARE NO FOOLS THERE. They all want to make money.

    b&w

  • buyandwin buyandwin May 29, 2016 2:33 PM Flag

    Foxy: My personal concern at this point is to satisfy my 8 year goal to Get a Dividend from my ACAS stock. This deal AS IT STANDS will give me a dividend that is over 10% annually with the potential of growth in the future. In addition as NMB has mentioned there is the potential for an extra dividend of some accrued funds that ARCC will be forced to pay out to be in compliance to the rules they operate under. I read recently on another board that it is about $0.82 per share. My point is for me to transfer my ACAS into ARCC on or before June 12 (ARCC goes x-div on June 13) and start to collect $0.38 per share after waiting about 8 years. Once I start collecting if they have another approximately $0.82 (or whatever amount they decide) they want to pay me, they will have my address and know where to send the money---AND MY BROKER will know to take the cash and drip it into additional shares so they can send me more money next quarter.

    good luck
    b&w

  • buyandwin buyandwin May 30, 2016 10:11 PM Flag

    All my ACAS shares have been in the IRA for many years since the 2009 $1.07 dividend was announced and was paid in stock. ACAS was around $2.00 at the time and few wanted the shares so there were plenty to buy and the price climbed. NAV was about $8 or $9 and ACAS was current on all debt and bills to be paid They paid all default interest penalty's even though they were current on payments. It was a crazy time to be around as, ACAS management finally threatened the banks that they would file for bankruptsy and let the judge decide, if the banks didn't back off and continued to collect their payment with default interest. The banks backed off and ACAS slowly recovered.
    Then management started getting greedy and that brings you up to date. And that's why I am switching out or ACAS and into ARCC And will try to do it on or before Dec 12 to qualify for the Dec 13 ARCC X-Div.
    b&w

  • buyandwin buyandwin Jun 1, 2016 5:01 PM Flag

    In line with my previous posts of the past few days,I started selling my ACAS yesterday and sold the balance I owned today. I started to buy ARCC and now have to wait for the new funds to settle and be available for re-deployement . I have had ACAS in MY IRA's all these years from when they were paying cash dividends, so there will not be a taxable event on the sale. Selling now and buying ARCC before ARCC goes X-Div on Dec 13 will put me back on track of receiving income which I was buying ACAS in the first place for.
    Actually the ACAS drama over these past 8-9 years turned out very well for me. I guess I was lucky.
    I hope I'm wrong but I still don't believe they will make this deal happen. With the 4 moving pieces to happen to make the deal it looks to me to be another Malon creation for him to make money.

    I hope everyone here makes out as well or better than I did.

    b&w

  • buyandwin buyandwin Jun 1, 2016 9:58 PM Flag

    BDC: I am not interested in arbitrage at the present time. I am looking for a reasonable (in my mind) way to get out of ACAS (which I did today) and replacing the Income that I stopped getting when ACAS stopped paying dividends in 2009. I bought many 1000's of shares in the $0.65 to the sub $3.00 range. This was all done in my IRA's In 2009 ACAS paid a $1.07 dividend that was paid in cash or stock. I chose ALL STOCK and it was issued when ACAS was selling for about $2.14--So basically ACAS gave me one free share for every two I had previously bought between $0.65 up to below $3.00. There was a long time frame between the X-Div date and the pay date and when it was finally paid ACAS was trading at about $3.25 and never looked back NAV at the time was about $7 or $8. After the 2009 stock dividend management changed their attitude towards the shareholders and IMHO they really figured out that there was $Billions of Dollars that were there and INHO they wanted all of it for themselves. Personally I made a lot of money with ACAS through the bad years. But I don't like how management has treated the shareholders. So I sold my position and am in the process of converting it into ARCC shares. I sold now because I'm not sure this merger will go through any more than any of the other schemes they have come up with in the past few years that turned out to not happen. I will go back to collecting dividends and leave the arbitrage to those that are interested.
    Good luck
    b&w

  • Reply to

    This board should be more alive.

    by mikiecrusher Jun 2, 2016 11:13 AM
    buyandwin buyandwin Jun 5, 2016 4:51 PM Flag

    MIKIE:
    I've been looking at the beaten up refuners. WNR just started getting covered by VALUE LINE this week. So why do you feel that WNR is a better investment than HFC MPC PSX or others that VL covers? Or don't you?

    Thanks for any feedback.

    b&w

  • HASI declares $0.30 dividend
    X-Dividend July 1. 2016
    Payable July 14,2016

    Dividend Yield 5.7% per annum.

    b&w

  • Reply to

    Has ARCC been a good investment?

    by donedealer Jun 11, 2016 1:14 AM
    buyandwin buyandwin Jun 11, 2016 9:23 AM Flag

    That depends on what you want from an investment in ARCC going forward. In my case--I'm interested in the income that I can get from my investment
    The S & P pays about 2% annually That doesn't cover inflation in my real world. Capital gains would have to be used to cover inflation. That would require selling part of the investment and giving up the income from the portion sold and also incurring an additional tax burden due to the sale. The income from ARCC over the past 5 years has averaged about 10% per year and that does cover inflation (In my real world) over the past 5 years.
    The risk, as you say, is what happens in the next 5 years. We don't know---So we just have to take in one day ata time and be alert and watchful going forward.

    b&w

  • Reply to

    Any concern about another offering?

    by duediligence1_98 Jun 15, 2016 3:14 PM
    buyandwin buyandwin Jun 15, 2016 10:52 PM Flag

    The HASI business model is that they pay out virtually all their income. And the bulk of that dividend (77% in 2015 was tax deferred) This past December HASI raised the dividend about 15%. It is expected that this coming December they will again raise the dividend about 15%.

    Since they pay out virtually all the money they make, they have to either sell more stock or issue debt to get capital to grow their business. That is their business plan. I look at a stock issuance, as a positive growth factor. As long as they issue stock and grow the dividend that is a positive move IMHO.
    I believe that HASI has a winning business plan in the coming decade. Since I plan to hold for a long time as long as they stick to the growth pattern they have since going public, I have been adding shares and dripping the dividends and growing my investment as the company is growing. There will probably be a dip in price due to the stock offering and I expect to be a buyer on the dip. I try to take advantage of opportunities when they are offered.

    HASI currently is a cornerstone of my portfolio Looking out 3 to 5 years, in a cooperating market, I expect the HASI price to be much higher that the current $21.15 level with a dividend of possibly $2.10 annually.

    good luck

    b&w

  • Reply to

    What's the price of the secondary?

    by hrosenldgt56a Jun 16, 2016 10:51 AM
    buyandwin buyandwin Jun 16, 2016 11:50 AM Flag

    The PR says 4M shares and HASI will receive $82M --That's $20.50 per share. Then the mention "less expenses" So you are right-they aren't too clear. Try calling Investor relations. The number probably is in the PR or web-site. I'm on the way out and don't have the time now.

    Please post any info you can get. Thanks
    b&w

  • Reply to

    Which is a better buy here ACAS or ARCC?

    by tobypharma Jun 17, 2016 2:47 PM
    buyandwin buyandwin Jun 19, 2016 9:48 PM Flag

    Doc: If you believe the ARCC price will be up to $20 in a few months (as I do) , It might be wise not to be concerned if the price rises up a Dollar or so by June 30 (Dividend pay day.) and just pay the price that it is on the pay date. Getting stubborn over pocket change might cost you bucks later because you might never buy it as it rises into the future, leaving you waiting for the dip that might never come.

    b&w

  • Reply to

    UBTI on K-1 question from ETE newbie

    by dougshokes Jun 25, 2016 10:06 AM
    buyandwin buyandwin Jun 25, 2016 1:45 PM Flag

    UBTI is not applicable if you hold the units in a taxable account. In a tax sheltered account every unitholder is different and each year is different from other years for each unitholder. You also lose other tax benefits of owning an MLP in a tax sheltered account because MLP's are a tax sheltered investment. The MLP's I own are in taxable accounts for that reason.

    good luck
    b&w

  • Reply to

    UBTI on K-1 question from ETE newbie

    by dougshokes Jun 25, 2016 10:06 AM
    buyandwin buyandwin Jun 25, 2016 5:56 PM Flag

    Hi Doug:
    The short answer is-I don't know. The reason I don't know is because I don't own MLP's in a tax sheltered account. The reason I don't is because MLP's are a tax shelter investment with many tax benefits to the owner if held in a taxable account. Many of these benefits are lost in a tax sheltered account . i guess it's something like "Two negatives make a positive" I believe an MLP investment in a tax sheltered account is wrong so I don't do it. I don't track UBTI because I don't need to in a taxable account. I can tell you again each year the UBTI numbers will be different and in addition they will be different for each investor each year.
    I live entirely off the market. I have been retired for 13 years. I have no pension plan. My investment objective is to maximize income and the more I can keep by legally deferring taxes the better I like it. One important way I can legally defer taxes is by using tax shelters properly. If I were you, I would read an MLP primer that you could find on Google, and read it

    So, I have given you the long and short answers. I hope it helps.
    b&w

  • Reply to

    UBTI on K-1 question from ETE newbie

    by dougshokes Jun 25, 2016 10:06 AM
    buyandwin buyandwin Jun 25, 2016 9:35 PM Flag

    Hi Doug:

    I don't understand what you meant by the last sentence you said----

    Pigs get fat but hogs get slaughtered, as they say.

  • Reply to

    UBTI on K-1 question from ETE newbie

    by dougshokes Jun 25, 2016 10:06 AM
    buyandwin buyandwin Jun 25, 2016 11:10 PM Flag

    That's the brokerage houses nonsense where they are trying to suck commissions out of you by scaring you into trading. They make commissions the IRS takes a big chunk of the profits, you give up the future income from that investment and you then have to duplicate what you already have except you have less money due to the taxes paid and you lose the opportunity to possibly make a Million because you are trying to protect a few thousand dollars. I don't mean to belittle a profit, but I do mean don't blow the opportunity you have in ETE. I assume you are comparatively new here and are not aware of the earning power and potential growth potential that ETE has. I'm expecting ETE to be a $1 M capital gains winner for me in the next 2 to 4 years and thats not including mostly tax deferred distributions received along the way. And if that happens the ETE price will only have matched its previous approximate $35 price. The interesting thing about ETE is if I'm wrong and it only reaches $20 or $25 it will be still cranking out growing distributions every 3 months and at the lower prices I will be able to add additional units for additional mostly tax deferred income at a lower cost per income dollar spent. Bad things can happen if you leave too many coins on the table by taking your profits too early and watching someone else make the profits with the stock you sold him.

    Think before you click the mouse.

    b&w

  • Reply to

    Best dividend stock ever.

    by jponypasture May 23, 2016 2:16 PM
    buyandwin buyandwin Jun 27, 2016 8:13 AM Flag

    Dividend Man:

    you said+++++It`s been good for me also, but I will not add more here++++

    May I ask why?

    b&w

ACAS
16.67+0.02(+0.12%)Aug 25 4:00 PMEDT