My only regret is that I didn't sell when Malon bought. I knew that that was a cue, but I didn't listen to that inner voice. Buffett says something like it's the lack to act errors that are the big losses. :(
I sold yesterday for 24.18 but still quite pleased. I bought AGNC for about 16 bucks back in 2008 about 6 months after they were spun out of ACAS and have held, collecting dividends, all this time. I got scared when Malon bought a bunch of AGNC stock @ 32 earlier this year (I think if I was a bird and relied on his timing to migrate south for the winter I'd freeze to death on the power lines). What really drove me to sell was their decision to buy back stock instead of pay me my well deserved dividend. I'm afraid the apple hasn't fallen far from the tree; ACAS has been on a buy-stock-instead-of-pay-dividend-while-they-keep-saying-they-are-pro-shareholder strategy for a couple of years and all I see there is that they have granted the buyback stock to their managers. I decided not to stick around for a ditto type screwing here.
So you want the price to stay low so they can buy more of the investors shares at a steal of a price and give it to themselves? You're a very smart dude.
And btw, I've been invested in ACAS for 15 years. How's that for instant gratification? Been here long enough to learn not to trust ACAS management and not to be intimidated by geniuses like you.
You're wrong, his money manager has no case. AIG gives shareholders cash, ACAS gives employees stock. I believe the reason ACAS trades so far below nav is because investors distrust ACAS management. Two weeks after saying the div was safe they stopped it, Wilkus got made whole on his stock, the stock buyback has gone to stock options, and the 2009 stock div was forced on the management (either they paid a huge tax bill or issued a stock div), and the last time investors believed in the nav value by management it dropped from 40 bucks to 7. They have done nothing for the shareowners that I know of since 2007; they have only been protecting their jobs and lining their pockets at the shareholders expense, of course IMO.
" If all options were exercised it would increase shares outstanding by close to 20% bringing the shares outstanding close to that before the buybacks started."
So, basically you're saying that we have given up our dividends so management can have shares for themselves. Gee, that makes me feel a lot better for doing without a dividend for 5 years. So much for 5 years worth of patience.
Couldn't agree more, Art. Why does it have to be all or nothing? Why not buy 90% shares and issue 10% in dividends when the pps is so far below nav. That would be approx a nickle per share per quarter for a dividend at the current repurchase rate, or 20 cents per share per year. That would be a huge help for people needing a div and a sign that management has divs on their mind, not just their stock ATM. It would put some support under the share price and help drive it to nav faster. They are spending approx 1.7 per share annualized on stock repurchases and 0 on divs, it wouldn't matter that much to spend 1.5 on repurchase and 0.2 on divs, but it would help out those of us retired and stabilize the pps IMO.
Exactly, and their record shows that they are indeed just using the stock as an ATM. They just exercise and sell. They don't make market purchases and hold. I want the div, I want the cash, I want to stop giving the company away to the employees!
Guess you don't know your math skills are lacking. 18% is less than 1/5th of the div. That would be 5 times lower than the div, not bigger than the div. Guess you better stay in school.
Wunderlich "downgrades" to 29 and you try to talk it below 20! Yea you're a WONDERKID! This spring is compressed and the runup is going to be a beautiful thing to behold, especially for those with the sense to ignore you. Not to mention a 20% yield here.
Thanks. I'm anxious for the Q2 data point on this issue.
I've been here a long time and hold a lot of ACAS stock. The managements compensation has bothered me for as long as I've owned the stock. I've almost sold in the past because of their self-helping nature. If they have truly sucked 60% of the buyback out of the company, I will have to re-think my holdings.
Your math is very disturbing. If you're correct, management has taken 37 million shares of the 62 million shares bought back to-date? They have awarded themselves 60% of the buyback shares? Effectively only decreasing the outstanding by 25 million after buying back 62 million shares?
You make me want to puke, just thinking that the management would be that underhanded and conniving. It would, however, explain why they haven't purchased shares at these discounts, but continue to exercise options and sell.
I can't wait for you to verify your numbers.
Yea, I know, but they're not blind to what has been going on with the stock and the affect a 1.25 declaration would have. Just curious that they continue to let the market play.
You maybe right, but I've been thinking johnny might have a point . Kain delivered positive speech this week and in Q1 cc he said not to extrapolate book loss to the dividend. So why haven't they announced div?