Out Fox The $treet

At the end of Q4, American Capital ( ACAS ) released quarterly buyback numbers. In what shouldn't be a huge surprise to investors, American Capital again repurchased a substantial amount of stock significantly below net asset value, or NAV. Based on the stock currently sitting in the $15 range, investors should expect even more buybacks going forward. American Capital is a publicly traded private equity firm and global asset manager that manages $20 billion worth of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers. Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. ( AGNC ) with approximately $10 billion of net book value and American Capital Mortgage Investment ( MTGE ) with approximately $1 billion of net book value. Read the full article at Seeking Alpha. Disclosure: Long ACAS. Please review the disclaimer page for more details 

With the stock continuously trading below net asset value (NAV), American Capital, Ltd ( ACAS ) keeps the buyback roaring quarter after quarter. As the company continues to plod along with positive earnings, a growing NAV, and substantial assets under management, it remains puzzling that investors are unwilling to pay fair value for the stock. American Capital is a private equity firm and global asset manager. The company owns over 40 businesses and manages $21 billion of assets, including through an affiliate it manages publicly traded American Capital Agency Corp. ( AGNC ) and American Capital Mortgage Investment Corp ( MTGE ) . Read the full article at Seeking Alpha. Disclosure: Long ACAS. Please review the disclaimer page for more details. 

Strangely, the stock market continues to allow a company to repurchase stock at a substantial discount to net asset value (NAV). American Capital, Ltd ( ACAS ) has completed a 52M share repurchase program for nearly $500M over the last 6 quarters at an average discount to a continuously soaring NAV of nearly 40%. The stock though continues to trade at a substantial discount even after having the ability to spend that much cash. American Capital is a private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $18.6 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $117 billion of total assets under management (including levered assets). The question remains why investors allo...

The market remains so uninterested in buybacks that a company can continuously buy its own stock at a substantial discount to net asset value [NAV]. American Capital, Ltd (ACAS) is a prime example, having recently completed an 8.8M share buyback in Q4 that will again help boost the NAV. The company bought the stock at an average price of $11.72, for a total cost of $103M. In the previous quarter, substantial purchases below book value added $0.23 to NAV. The NAV stood at $17.39 prior to the quarter's start, so it undoubtedly added to that value. American Capital is a private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $17.2 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $1...

The market has become so obsessed with dividends that a company buying stock at a 40% discount to net asset value (NAV) is often questioned for not paying dividends instead. In fact, American Capital, Ltd. (ACAS) recently announced completing an 11.4M share buyback in Q3 that will undoubtedly be questioned on the next earnings call. The company bought the stock at an average price of $10.99, for a total cost of $125M. Considering the substantial purchases below book value, the transactions will add over $0.20 to NAV. A smaller buyback in Q2 at a slightly higher discount to NAV added $0.20. American Capital is a private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites, and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $17.2 billion of assets, including assets on its balance sheet and fee earning assets under mana...