Finally some good new to report in 2009 for one of my stocks American Capital (ACAS). Early last year ACAS was my second largest holding after Kinder Morgan Energy Partners (KMP). ACAS was down around 90% for 2008 and finished the year around $3 a share and to matters worse, they announced the suspension of their dividend.
After today, ACAS has been up five days in row and is now my best performing stock for 2009 with 125% return year to date. I know it is a little early to name my best performing stock of the year but it is nice to see the stock come back some.
On Monday, ACAS shares skyrocketed 41.3 percent and today they rose $2.11, or 41 percent, to end at $7.31. Two days of over 40% gains and you think it would be close to its 52 week high but it still has a long way to go reach last years high of around $37 a share.
Next, I just hope they can start paying a dividend in 2010.
Disclosure: The Div Guy owns shares of ACAS at the time of this post.
Worst to First: American Capital (ACAS)
Posted by The Div Guy | Wednesday, January 07, 2009 | acas, value investing | 3 comments »
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I purchased a very small holding of ACAS at $13.50 (right before they announced the dividend cut) for my dividend portfolio. In December I tripled my position (still a small holding though) bringing my average down to $6.93.
They are supposed to at least declare about $1.45 in dividends in 2009 (based on the $300 million they said they had saved for that divided by 207 million shares). When it was $3 a share that's still a yield of 50%. Of course there's always the chance they don't declare the dividend.
WI,
That would be a nice payout. I am still bullish on ACAS and think they should do very well once the economy picks up.
Good prediction, Wisely. I wish I would have had that much foresight and bought in a few weeks ago under $3 in order to catch the $1 dividend in June. As it is, I wouldn't be surprised by a corresponding fall in the days after the June dividend.