Looking at the charts, though, I'm wondering if this upward movement is just a correlation with the financial sector. I.e. if the financial sector tanks, will ACAS go down with it? Is ACAS reliant upon the financial sector doing well in the short term?
If I used 8 years, then that comes out to approx 9.28%/yr compounded. That's not counting any divvies/interest (if there are any), of course.
Here's hoping to them putting this money into additional investments (and some share buybacks)!
I agreethat the current discount to nav is the lack of clarity and "trust" into the nav valuing. If we can be exposed to the income numbers, there will be a lit more trust to the numbers reported, thus hopefully shrinking the discount. If management does deliver on its promise this quarter, then I can see this stock going up to 20 in the next year, if not less.
Sentiment: Strong Buy
Actually, it looks like they tried to bid a lot this quarter, but didn't win any. I guess they're going to sweeten the pot next quarter given the better debt facilities? It seems like they're recognizing the drought, and that's a plus sign -- hopefully they can start their core business back up. They have about 2 months left in the Q. So if they can put 4 or 5 on the books, thing will start looking good.
Great, then let's do that. I'd rather that than keep paying useless management with more diluting options.
ACAS said they are expecting a lot more originations in Q4. Well, considering there was, what? One or two originations this quarter? I guess one more would count as "significantly more".
Yeah, if feels like a setup for "sell on the news"...except there's not much news. Just a sell on the earnings release. I've cleared out a portion of my holdings just to make sure I don't get burned again.
I think the basis is simple:
1. only a couple of events this quarter
2. ACAM valuation most likely went down
3. the same drivel about stock buy backs (after Malone talks, you'd be led to think the sole purpose of corporations is to buy back their own stock), although this quarter's buyback was unusually large
4. more BS NAV valuations on completely illiquid/unsellable subsidiaries employing loads of incompetent accounts who can't even consolidate their books...mark to market my rear end -- what market is there for worthless junk that need constant recapitalizations to stay afloat?
Want more? Yeah yeah, ECAS valuations may have gone up...but again, refer to point 4 above.
I think ACAS has grown scared with the financial meltdown. They need more time to grow their balls back. That and they're saddled with companies they can't sell.
Zeit's intent is to stir up discussion about the announcement, not to regurgitate info on the front pages of Yahoo. It is pasted here for context.
I wonder if they had the cash on hand already, or they sold some holdings to get the cash. If they already had the cash, does that count towards the fees?
Agreed. I guess the whole discount feels like a uncertainty in the asset prices. It's pretty much the same amount of discount all the big banks have that were hit hard during the crisis. I.e. they're all trading 20% below NAV -- BAC, C, AIG, etc....
I'm guessing their holdings' evaluations are a bit suspect, hence the discount. If so, then that could partly explain ACAS's discount as well -- ACAS has a lot of equity investments that no one can truly value. I guess as the economy turns positive, those investments will get valued more and more north. But until then....