ACAS has been trading at very low volume recently. Probably for two reasons, first the company is likely in its blackout period before earnings so is not buying back stock. Second, many investors are waiting for more information about the timing of the reorg before buying. In the meantime, ACAS has suffered from the overall market weakness as well as the recent weakness in BDCs.
Info to be received this week will be critical as to the near term direction of the stock, although, absent significant overall stock market weakness, company buybacks (which are highly likely to resume after earnings), the large discount to book already in the price, and the pending reorg should keep this stock from declining too much further in my humble opinion.
So, the risk-reward ratio at its current price seems very attractive.
Mike, what a kind, thoughtful response. Obviously, you have been burned in this stock and don't know quite where to direct your anger. Me, on the other hand, have made tens of thousands on this stock over the last 6 years. I have been on this board for years, and while I don't post often, when I do, it is my thoughts, not from management. Did you bother to read the Jaded Consumer article I referenced? I would guess not. Hope you have a better day tomorrow.
He is the voice of reason on this company, and has been for years. People should not panic about the latest decline, it is related to the decline in BDCs and MReits. I view it as a buying opportunity because the time to reorg is getting shorter and shorter. I am accumulating shares again.
Be patient, the downside risk from here is likely limited given the current discount to diluted book value, of course absent a significant market decline. The post reorg should attract new buyers of the two surviving companies, and the upside should be good.