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[Sree]

This is a good stock to buy. I did not see this thread anywhere so I am posting it... If I have overlooked the existing thread please ignore this thread...

This is a stock to buy because American Capital Ltd. announced that its Board of Directors has declared a dividend of $1.07 per share payable on August 7, 2009, to stockholders of record as of the close of business on June 22, 2009, with an ex-dividend date of June 18, 2009. American Capital, Ltd. (ACAS.O) Key Developments | Stocks | Reuters.com


The most unusual dividend in the entire week has been the mystery at American Capital Ltd. (NASDAQ: ACAS), where a massive dividend of $1.07 was declared. This will either be paid in cash or in stock. The stock is up over 20% on June 11th, but based upon a $2.76 close of June 10th this one is now paying a whopping 38% yield. After the gains on June 10th, the yield is still north of 30%. Be advised, this dividend is higher than the entire earnings estimates for 2009 and 2010 and the company still has significant debt.

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And this stock is up 8.53% today when the whole market is down... Looks like there is a lot of here.

Please share your thoughts.

[Dognamedabu]

ACAS was posted here a few days ago...I think Latte posted it but now the thread is gone. Anyways bought it last week sold today for a nice 25% gain...It looks like the dividend will be paid 90% in stock.

[patch]

I got in on Friday at $3.50, and will probably sell before ex-div date. And really not sure how far it will go down with the stock/cash mix for the dividend. Don't see this stock regaining its sp after the dividend. So will play this one safe and hopefully get out with at least a 15% profit for 3-4 days work.

[BuffaloBull]

Its true the price will drop, but to what extent? Dividends this large are rarely heard off and considering its 90% or more stock I'm wondering how far this will fall and how much will it stabilize at. I'm really tempted to only sell half on the 17th in the hopes that I can get some freebies shares that I can forget about. Does anybody else have a better strategy for selling ACAS?

[dynamicfoe]

Same question. I got in at 3.55 and it is now 4.33 AH. For tomorrow, should I sell during the day or AH considering that I don't really care much about the dividends?

[Dognamedabu]

Originally Posted by dynamicfoe Same question. I got in at 3.55 and it is now 4.33 AH. For tomorrow, should I sell during the day or AH considering that I don't really care much about the dividends?

I bought this due to the dividend announced on the day it was announced when latte here at SR brought it to our attention. It went up 25% for me...I sold at $4.10 so I guess I got out to early but I still made what I wanted to with this one. So if you don;t care about dividend you will be selling it BEFORE the date of needing to be on record as a shareholder..Sorry I don;t have that date on hand but it is easily found.

[BullsonParade]

I also got in last Thursday at 3.30.

I may be totally out to lunch on this so please correct me if i am wrong. Is there a resistance level around the 5.50 to 7 level? Is this even valid?

I am very new and have only been attempting to read charts the last couple months. So, if anybody could give me some input that would be much appreciated.

If this actually is a valid reistatance level, I was wondering if anybody's strategy changes if this breaks through resistance levels before the ex-dividend date.

[patch]

I'm new as well. And I would be surprised if this thing pushed up past $5. I'm not a big fan of the financial numbers for this company, so it isn't one I really want to keep long term. So I plan on dumping before the ex-div date (6/18 I believe) no matter how high the sp goes.

[BullsonParade]

i agree, i was planning on exiting in the next couple days. I was just wondering if anyone is considering keeping part of their position or if enything changes if a resistance level is met. I think keep the next couple days will be interesting with the high volume

[dynamicfoe]

Just for clarification... The ex-dividend date for this stock is June 18th. So if you want to cash out on the dividend you have to buy this stock on the 15th because of the three day settlement.

If you care less about the dividend you would get rid of it on the 17th, which is what I am planning to do.