Price Tanker: American Capital, Ltd. (ACAS)

Posted in General 
November 10th, 2008

American Capital, Ltd. (NASDAQ: ACAS) is seeing its stock getting killed right before the open this Monday morning.  The company has three announcements:
1) Losses because of unrealized depreciation on investments, at -$2.63 EPS.
2) acquisition of European Capital’s remaining stake for roughly $158 million.
3) The biggie… DIVIDEND SUSPENSION

This company has been a habitual stock seller, and shares have fallen by 75% from highs.  Many holders owned this one because its dividends had been so high.

Shares are down 33% at $9.20 about 2 minutes right before the open on about 260,000 shares pre-market.  The prior 52-week trading range is $9.92 to $41.34, so this is a new recent low……

Jon C. Ogg
November 10, 2008

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