Monday, November 10, 2008

ACAS Dividend News

American Capital Strategies announced that it will be acquiring all of the ordinary shares of European Capital held by other investors. European Capital shareholders will be getting about 1/3 of ACAS share in exchange for their stock. Furthermore ACAS announced that it won't pay any more dividends for the remainder of 2008.

This doesn't really come as a shock to me as ACAS stock price has been falling for several months after I considered it a must own dividend stock and bought some shares in this business development company. With the stock being off over 40% as of now I guess I should have sold at the open if I had seen the news earlier. Anyways I am planning on selling my ACAS position.

Disclosure: Long ACAS

2 comments:

  1. Argh!! I am in a 2-day meeting and missed the announcement. I will have to enter a sell order tonight. Thanks for the update!

    Best Wishes,
    D4L

    ReplyDelete
  2. Tell me about it.. I am starting to be suspicious of all stocks that sell stocks/bonds to finance themselves while paying super rich dividends out of capital..

    ReplyDelete

Questions or comments? You can reach out to me at my website address name at gmail dot com.

Popular Posts