Confused by the tax asset impact of Q4? Wondering whether a dividend makes sense, and when we'd see it again?
All this and more on "Understanding American Capital's 2011 Results".
Therein, we see American Capital's real NAV improvement (that is, recognizing that the "tax asset" isn't an income-producing asset and wasn't really even new in 2011 as it resulted from crash-era loss carryforwards), revisit the share buyback, and think about the effect of taxes as ACAS changes between a RIC and a C-corp (and maybe back?). We also weigh the impact of AGNC and MTGE on ACAS' per-share results, and suggest that income investors wanting ACAS' management expertise look to MTGE and AGNC until the tax treatment of potential dividends becomes clear.