tag:blogger.com,1999:blog-726517614184169426.post4568541043840899510..comments2023-08-23T04:15:41.751-05:00Comments on The Jaded Consumer: ACAS: NAV Up Again In 2Q2011Jaded Consumerhttp://www.blogger.com/profile/04631410690179296528noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-726517614184169426.post-22630255018370537112011-08-03T15:49:29.432-05:002011-08-03T15:49:29.432-05:00No, not everything is down. Just everything I hel...No, not everything is down. Just everything I held at the time I wrote. Although by close of market, ACAS was no longer down >70¢ and several of my other holdings had actually turned positive on the day.<br /><br />This morning, though it was a wash of red for everything I held. <br /><br />Congratulations on your Mastercard :-)Jaded Consumerhttps://www.blogger.com/profile/04631410690179296528noreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-13455762249509646512011-08-03T15:25:31.732-05:002011-08-03T15:25:31.732-05:00I agree with all this, and I had thought about the...I agree with all this, and I had thought about the dividend statement by Zacks, but continue to be shocked that the market is giving less credit to the NAV growth. And, not EVERYTHING was down today - MasterCard up 13%. <br /><br />Great analysis as usual, though.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-30899740892077879422011-08-03T12:34:44.215-05:002011-08-03T12:34:44.215-05:00UPDATE: Another reason ACAS may be getting hammer...UPDATE: Another reason ACAS may be getting hammered is that Zacks wrote (while recommending ACAS as a Rank 2, that is, a short-term buy) that ACAS would not be resuming a dividend soon. While obvious for some time to anyone familiar with the way dividends are calculated for a BDC, this may have seemed like "news" to gadflys buzzing past the article and concluding ACAS had some kind of financial problem. <br /><br />What ACAS gets from its loss-carryforward (which it's maximizing with the failed RIC test) is the ability to keep what it brings in. Keeping what it's already got prevents it from paying money to borrow capital for investment.<br /><br />The other issue that may be creating a sensation among those not paying close attention is that a "failed" RIC test could easily be read as a "failure" rather than being perceived as a tax stratagem.<br /><br />In short, if the selling keeps up we have an opportunity to buy on a senseless dip. After all, NAV is heading north. Even if the markets are a beauty contest in the short run, they are (according to Buffet, anyway) in the long run a weighing machine. If management keeps executing like it has the last couple of years, the NAV growth will eventually win out.Jaded Consumerhttps://www.blogger.com/profile/04631410690179296528noreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-88341262658685688112011-08-03T11:23:22.284-05:002011-08-03T11:23:22.284-05:00Over the last week or so the whole market has been...Over the last week or so the whole market has been hammered, and with it all the comparables against which ACAS' portfolio companies are compared for valuation. Today in particular, the Dow, NASDAQ, and every holding I have in any industry are all down. Considering that ACAS employs leverage -- and for all I know may still have special margin requirements dating from its days as a penny stock a few years ago -- it's unsurprising that ACAS is receiving vicious treatment in the market.<br /><br />I've never pretended to be able to time stocks, but I like ACAS' 8-quarter streak of increasing NAV and the fact that the NAV increase has shown several double-digit quarters -- that is, double-digit NAV growth not just on an annualized basis but within the reported quarter. Consequently, I have confidence that management is capable of executing its plan and am not particularly concerned about the very near term.<br /><br />Back when ACAS was in technical default and bankruptcy loomed, the doomsday vision of ACAS had more credibility. Today, I think we're seeing ACAS as a reflection of leveraged exposure to the general market conditions. Of course, 0.4:1 is less leverage than ACAS had a few years ago. And with ACAS' NOI up, the prospects seem very slight for failing to meet interest payments or run into trouble with secured creditors that would make patient waiting impractical.<br /><br />I'm looking at a research report now that shows ACAS as +101.43% since the researchers last downgraded it. Nice, eh? Gotta love those fine minds who write research reports.Jaded Consumerhttps://www.blogger.com/profile/04631410690179296528noreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-45466810828156793132011-08-03T10:49:36.016-05:002011-08-03T10:49:36.016-05:00So why the &*#$ is it getting hammered today?!...So why the &*#$ is it getting hammered today?! I am completely baffled.Anonymousnoreply@blogger.com