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American Capital, Ltd. Message Board

buyandwin 103 posts  |  Last Activity: Apr 14, 2014 11:21 AM Member since: Jul 30, 2000
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  • buyandwin buyandwin Apr 14, 2014 11:21 AM Flag

    Hi arelseg;
    DNP IMHO is a good candidate for stable income. Fund started in March 1987 at $10 a share and started paying $0.06 per month and increased it to $0.065 in August 1997. They have been paying every month with some years a little extra in December The price has been pretty stable with a high of about $13 and a low of $6 in the 2008-9 meltdown. A purchase at $9.75 gives you an 8% return.
    If someone wants comparatively safe exponential growth and can reinvest the dividends a lot of money can be made here.
    For example 100 shares bought in March 1987 for $10/share with all dividends reinvested would give you over 1043 shares today with no further cash added . Additional funds added on a regular basis would grow the share count to much higher levels with virtually no rise in share price over the time. There has been no share price increase over the 26+ years of the funds past history. I am investing here and dripping the monthly dividends. Also note that the fund gives an up to 5% discount on reinvested dividends into additional shares when it is selling above NAV.

    Good luck
    b&w

  • Reply to

    Tax Question

    by eusdond Apr 8, 2014 4:03 PM
    buyandwin buyandwin Apr 13, 2014 3:25 PM Flag

    Liza: I also transferred our accounts this past year from joint TOD to individual TOD at TDAmeritrade and it was done with no problems and was reflected correctly on the monthly statements from then on and the 2013 K-1's were also correct in the individual names TOD.
    We had two accts 1) Me and my wife under my SS# and 2) My wife and I under her SS#.

    The reason we separated them into individual accounts, was in the event of death the joint account would only step up one half of the securities to current market value.

    Call your brokerage and tell them your lawyer wants you to update your beneficiary designation and you misplaced the papers and need their help and could they please send you a copy because your lawyer needs the papers to update his files.
    b&w

  • Reply to

    Now is the time

    by ribi1 Apr 11, 2014 9:31 AM
    buyandwin buyandwin Apr 13, 2014 2:43 PM Flag

    B4V: Didn't mean to be sarcastic. But, we all would like to buy something cheaper, and many times when we get the price we want many still don't buy because they fear the lower price is still going lower and they start to believe that the seller really knows whats happening to cause him to sell at the ever lowering price. When in reality the seller doesn't know any more than the hesitant buyer at the ever lower prices. Finally at some point some people finally say --Its too late to sell and I'm just going to forget about it and whatever happens, happens. THAT'S THE TIME TO BUY. But who knows when that time is until it starts going up and it is after the low point. Many are still fearful because some will now have profits from the bottom price and will take them causing more fear as the mood tries to change to the upside. Thats the way the market works IMHO. But nobody knows the bottom or where it is until later. Everybody is truly clueless and some are luckier than others are and can try to analyze better. Those are the ones that are buying at the $0.59 bottom from the not so lucky that are selling at that bottom.

    good luck
    b&w

  • Reply to

    Now is the time

    by ribi1 Apr 11, 2014 9:31 AM
    buyandwin buyandwin Apr 13, 2014 9:19 AM Flag

    B4V : How many shares did you buy in 2009 when ACAS traded for $0.59? Or were you looking for $0.58?

    b&w

  • Reply to

    Tax Question

    by eusdond Apr 8, 2014 4:03 PM
    buyandwin buyandwin Apr 13, 2014 9:02 AM Flag

    Hi Eusdond:

    I'm sorry you are having problems with Fidelity. My broker is TD Ameritrade and they are just as bad. Maybe worse. You have to just keep battling with these people to get things done the way you want.
    I even discussed changing brokers with my accountant recently after some recent problems. His advice was not to change. He told me he uses Charles Schwabe and they are bad also.
    I would guess that that is the norm in the business and the help they have are non-investing type people who haven't got a clue as to what you want, how to do it and care if it's done right or not. Hopefully, for them when you call back, you will get someone else on the line and they won't have to deal with it.

    good luck
    b&w

  • buyandwin buyandwin Apr 12, 2014 8:27 AM Flag

    The distribution was dripped into additional shares at $9.482 which was the NAV as of the close of business April 9, 2014 the day before the distribution was paid. So the discount was not 5% since DNP was trading for less that the 5% premium.
    Is anyone interested in DNP as an investment and reading this board or is the board dead? I ask because I believe DNP is a good investment vehicle to grow wealth for the future.

    b&w

  • Reply to

    Management ripoff

    by wftglo Apr 8, 2014 9:48 AM
    buyandwin buyandwin Apr 11, 2014 8:20 PM Flag

    Vic: The last dividend that was paid was the 40+% stock dividend that management paid after the collapse down to $0.56 per share when I was buying hand over fist as fast as I could. And then they issued the stock dividend at $3.24 to make the buyers more than whole and insure even more profits going forward. So, it is working out well for me. The real question for you, is how is it working out for you? It looks like you got out at the wrong time and are looking for a scapegoat. The only scapegoat it appears is you---You pushed the sell button in fear at the wrong time. I an truly "Sorry For Your Loss"

    b&w

  • Reply to

    heading south

    by rjraecek Apr 9, 2014 2:00 PM
    buyandwin buyandwin Apr 11, 2014 8:04 PM Flag

    Hi DPROFITEER:

    Don't feel bad, I gave you the wrong number of shares. The 900 share total was as of 7/9/2012 at the bottom of the page. But then I noticed there was another page-and I updated it to the new dividend paid today.. The total shares including today's dividend is 1043.521 shares. Assuming the figures from Yahoo are correct and my abacus was working correctly. So it appears that 100 shares bought in March 1987 at the funds beginning would have about 1043 shares if the dividends had been reinvested. But, I will let you figure it out and let me know, because I'm not sure. Thanks for reading and correcting.
    P.S. DNP goes x dividend (.065) again on April 28, 2014 and is payable on May 12, 2014
    b&w

  • Reply to

    heading south

    by rjraecek Apr 9, 2014 2:00 PM
    buyandwin buyandwin Apr 9, 2014 9:33 PM Flag

    RJ; If you bought MWE at $70 you must have thought it was worth more than that or you wouldn't have boughti it. The only things that have happened since then is that MWE has completed some processing plants and is creating more DCF. MWE has continued to increase the distribution every quarter since you bought your units. The only thing that has happened in a negative manner is other unitholders who are not more knowledgeable than any others have decided to take profits and some others think the sellers know more about the future of MWE that is not supported by fact. I have a long term view on MWE and I consider it a buying opportunity. I have no clue where MWE will trade in the near future but I believe longer term buyers at this level will be amply rewarded. If you have the means to do so, you have to decide to either buy, sell or remain as you are now. If you have fear in your bones you might want to invest in mutual funds.
    DNP invests mostly in Utilities and has about 20% in MLPs(one of which is MWe)
    They pay a steady $.065 per month about 8% annually and they have been paying for about 26 years . If you can drip the dividends they give a 5% discount on the reinvestment and the shares keep adding up month after month. If you bought 100 shares in 1987 (start of the fund) for $10 and just kept reinvesting the dividends you would have about 900 shares today at $9.74. No share price growth but a lot of stability-The high over the years was about $13 and the low (In the 2008-9 meltdown) of about $6.00.
    So what did this no-growth fund do? 900 shares today VS 100 shares 26 years ago at the same share price is about a 30.769% per annum return with no share price growth. We didn't even talk about if you were satisfied with the steady dividends and low volatility you probably would have been adding additional shares over time and made even more. It might have diverted some money from other investments that didn't turn out as well as this has.
    b&w

  • Reply to

    My prediction

    by yourbestfriendintheworld Apr 1, 2014 12:24 PM
    buyandwin buyandwin Apr 6, 2014 2:33 PM Flag

    Actually $6 to $15+ in 2 1/2 years is not too shabby. We didn't get closer to NAV because the NAV kept running ahead. Thats not the perfect solution to a problem, but it's not a wrong solution. I've made 150% on my money in the past two years and so have others that have been here at the same time. Yes, a stock price of $30 or more would be nice, but so far we're not there yet. Maybe the re-organizations will be the next leg up.
    patience
    b&w

  • Reply to

    Taxed as??

    by macbride247 Apr 2, 2014 9:02 AM
    buyandwin buyandwin Apr 4, 2014 5:22 PM Flag

    Clrodrick:
    I don't know how old you are but at 70 1/2 you mist start taking at least RMD's (Required Minimum Distributions) out of your regular IRA each year there is a standard percentage chart that gives you the MINIMUM AMOUNT YOU CAN TAKE OUT each year. The percentage goes up each year as you get older. If you are successful in your investing the amount will go up faster due to the higher percentage and the higher IRA balance if it keeps increasing. There is an age limit ( i believe) when you can't transfer from a reg IRA to a ROTH anymore. Make sure you understand what you are doing- A mistake in age-amount of money or another improper move will cost you BIG money. Penalties can run up to 50% plus taxes for errors..
    IF YOU DON'T KNOW THE RULES _PAY A TAX ADVISOR IT WILL BE CHEAPER THAT AN ERROR.

    I know a woman that took a loan on her 401 K because she needed money to buy a car. The interest rate was minimal so she decided to do that instead of getting a loan at a bank. Then 3 months later she got laid off and didn't know she had 30 days to pay the 401-K back and didn't do it. So it became a taxable event and being under a certain age she got hit with a 10% penalty.
    I strongly suggest you know what the pitfalls are to what you are doing BEFORE YOU DO IT.
    good luck
    b&w

  • Reply to

    Taxed as??

    by macbride247 Apr 2, 2014 9:02 AM
    buyandwin buyandwin Apr 4, 2014 3:11 PM Flag

    Bobobeck- Not really a problem. IRA's should not be used as a slush fund for taking loans .
    b&w

  • Reply to

    Taxed as??

    by macbride247 Apr 2, 2014 9:02 AM
    buyandwin buyandwin Apr 4, 2014 3:08 PM Flag

    Clrodrick:

    To give you an idea--My RMD in 2014 is 36.7% higher than the RMD for 2013. And that is on top of other income. Taxable income while commendable is counterproductive because it increases your your Adjusted Gross income and that decreases your allowable deductabile expenses which effectively increases your tax bill. Deferring taxes as long as legally possible is very important to accumulate wealth for the statistically longer life span medical science has provided. Inflation is a destroyer of money. For Every $1 we spent in 2003 the year we retired, we spent $2.29 in 2013. Taxes is a large part of the increase. But if you want to pay your bills and not eat catfood you better make the money --And when you do The government will be right their for as much as they can get out of you.
    good luck
    b&w

  • Reply to

    Taxed as??

    by macbride247 Apr 2, 2014 9:02 AM
    buyandwin buyandwin Apr 3, 2014 10:09 PM Flag

    I keep PSEC in IRA's . But it is bulking up the IRA's so the RMD's are increasing I would suggest for younger people that have an alternative to get as much into a ROTH as opposed to an IRA. If you are in any way successful in your investing you will be paying more in taxes in retirement than while you were working. You will be spending more in retirement than while working. Statistically you will be living longer so you will need more money for the later non-working years because the only way you can earn the money you will need is by investing. If you don't prepare you will be short. . How much is inflation costing? My wife and I retired in 2003. For every $1 we spent in 2003 we spent $2.29 in 2013. A major cause of that is Taxes. And if you don't invest in tax shelters and defer as much as you can it will be even more. If you get real unlucky you might qualify for the AMT and pay even more.
    b&w

  • buyandwin buyandwin Apr 3, 2014 4:38 PM Flag

    Lof:
    Don't forget, if we get the $5 on $15 you mentioned, we will also probably be receiving an income stream from one or more of the parts. The income stream will be an important factor of the "splits" to create the additional $5 on the original $15.

    b&w

  • buyandwin buyandwin Apr 3, 2014 4:30 PM Flag

    Fox:
    There are a lot of outside things that will come into play. As you said market risk. regulatory approvals and who knows what else. Trying to put a definite time line and market price via options increases the risk of being right with the events part of the story but wrong on the time line and losing it all because of that. Thats changing the investment into more of a gamble.
    I'll just sit with my shares and see what they have to say next quarter.
    Patience-More money was sometimes made by doing nothing but waiting. I'm waiting
    b&w

  • buyandwin buyandwin Apr 3, 2014 3:34 PM Flag

    Bacon:
    In 1991 I started buying EXXON direct from the company. No Commissons and dripped the dividends Kept adding about $100 whenever we had money. For diversification, my wife bought MOBIL and we did the same.
    Well you know they later merged, so there went the diversification. We continued buying in both accounts until we retired in 2003 went we started taking the dividends in cash.
    Over all the years XOM has not been a market superstar but it proves you don't need the high fliers to help provide for retirement. You need patience and the market will grind along its merry way if you pay attention
    good luck
    b&w

  • Reply to

    Price v Value

    by donedealer Apr 3, 2014 12:01 PM
    buyandwin buyandwin Apr 3, 2014 2:07 PM Flag

    Foxy: Of course you are right. And management knows it also. And they are getting older and they want to leave a good legacy to be remembered by. They want to wipe out the 2008-9 stigma and thats why they are busting their a-s to make an acceptable package for wall street (And also to make money)
    I believe the smartest thing we can do is wait and let them do the micromanaging.
    Patience
    b&w

  • buyandwin buyandwin Apr 3, 2014 1:57 PM Flag

    ACAS is not a BDC. Management knows it, and we should realize it also. The thinking that everyone here on the board is because of what management has been thinking about. From their experiences in their various offshoots I believe they feel they can make more money for themselves and us as shareholders by following some or all of these strategies (Remember their original name was American Capital Strategies) They have the public entity and they will twist it to the best advantage they can. They are probably looking to surpass their previous achievements and it probably would be wise to let them put their experiences in money management work for us. I believe they are smarter than me, and if I can get them to let me tag along while they make money for me (without charging me 20% fees on the profits) I'd be a fool not to let them.
    b&w

  • Reply to

    Price v Value

    by donedealer Apr 3, 2014 12:01 PM
    buyandwin buyandwin Apr 3, 2014 1:06 PM Flag

    Splits make everyone feel good, but create no value. it's like cutting the pizza into 6 slices because you're not too hungry.---Or cutting it into 12 slices because you are starving and you want a lot to eat.
    b&w

ACAS
14.41+0.06(+0.42%)Apr 15 4:00 PMEDT

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