Monday, April 7, 2014

American Capital: Time To Stop The Buyback


Summary
  • Substantial buyback ends after 3 years of purchases below NAV.
  • Reducing the complexity of the corporate structure should boost valuation.
  • ACAM has several initiatives to grow funds under management to further drive growth.
After three years of a relentless buyback, American Capital, Ltd. (ACAS) announced that the company has suspended the buyback. Over the years, the company bought shares at substantial discounts to net asset value, or NAV, but the stock never got the deserved respect.

Read the full article on Seeking Alpha.


Disclosure: Long ACAS. Please review the disclaimer page for more details. 




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