tag:blogger.com,1999:blog-726517614184169426.post5657427424498456735..comments2023-08-23T04:15:41.751-05:00Comments on The Jaded Consumer: On ACAS in 2009Jaded Consumerhttp://www.blogger.com/profile/04631410690179296528noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-726517614184169426.post-24009950413593014192009-03-16T23:49:00.000-05:002009-03-16T23:49:00.000-05:00Look no further; heavy insider buying is happening...Look no further; heavy insider buying is happening as we speak. And, might the recent rumblings about the MTM rule change (http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200903161642DOWJONESDJONLINE000518_univ.xml) not be HUGE for ACAS, or am I missing something?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-50573193780654056622009-03-04T17:31:00.000-06:002009-03-04T17:31:00.000-06:00I believe ACAS is very undervalued. They may be go...I believe ACAS is very undervalued. They may be going through a tough time now, but in a year or two I believe this stock will be closer to the fifteen dollar range. What is more realistic right now, bankrupt or a revitalized company down the road. Any thoughts?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-90217451065610331522009-03-04T15:15:00.000-06:002009-03-04T15:15:00.000-06:00Any idea on the CUSIP for ACAS public bonds?I was ...Any idea on the CUSIP for ACAS public bonds?<BR/><BR/>I was also curious on what holders had to exit ACAS on the dividend cut. Huge amounts of shares were held by dedicated dividend and income funds.<BR/><BR/>I'm watching carefully for insider purchases. I think Milon needs to step up and buy.<BR/><BR/>Also, great job on this blog!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-15657312484720624502009-03-03T18:11:00.000-06:002009-03-03T18:11:00.000-06:00Yes, completely agree with the FAS-159 election op...Yes, completely agree with the FAS-159 election option. It's a pity that ACAS didn't/couldn't jump on that bandwagon.<BR/><BR/>If you have the spare time or energy, MCGC reports this Friday. They already announced their covenant renegotiation last week. It'll be interesting to see what we can glean from the Q&A. <BR/><BR/>If I find something interesting, I'll be happy to share!Evinxhttps://www.blogger.com/profile/07393986740356496843noreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-89330808355895093302009-03-03T18:05:00.000-06:002009-03-03T18:05:00.000-06:00I don't know about other BDCs; my only holdings i...I don't know about other BDCs; my only holdings in this area are AINV and ACAS. I do hold a little AGNC picked up at $15, but since the shares are back to $15 this isn't the victory it once appeared. I think observers believe ACAS is bleeding it to pay more dividends than it can afford, because ACAS is cash-strapped. Dividends from AGNC seem to be outstripping profits.<BR/><BR/>Electing FAS-159 seems a good thing for a BDC, as it places debt and equity valuation on the same level and shows net valuation change more closely aligned with portfolio risk than simply fluctuating as a consequence of rate spread expansions/contractions beyond the control of management.Jaded Consumerhttps://www.blogger.com/profile/04631410690179296528noreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-88021686457050252662009-03-03T17:57:00.000-06:002009-03-03T17:57:00.000-06:00Thank you for your analysis.I own a few BDC-RICs (...Thank you for your analysis.<BR/><BR/>I own a few BDC-RICs (a masochist in this market), and I am curious if you follow PNNT or MCGC.<BR/><BR/>PNNT is the only BDC I know that elected FAS 159 so it's been able to successfully accomplish the two goals all BDCs need to do: match assets and liabilities, and match cash income and cash expense (includes the dividend).<BR/><BR/>MCGC was the first BDC afaik that ceased dividends ... and now is the first to announce a major convenant renegotiation offering substantial relief in case net worth falls below the 1:1 BDC ratio.<BR/><BR/>As ARCC and MCGC have done interesting purchases of CDO debt at below 30 cents on the dollar - that really improves the debt to equity ratio and offers great upside if and when LIBOR moves northward.<BR/><BR/>Malon wouldn't comment on debt buybacks on the call ... maybe something is up. That's the best way to recycle debt prinicipal they receive, imho.<BR/><BR/>In any case, a 70 cent stock today due to a drastic fall in the last minutes of trading ... I'm holding a painful slug of ACAS. <BR/><BR/>Thoughts?Evinxhttps://www.blogger.com/profile/07393986740356496843noreply@blogger.com