American Capital LTD (ACAS)

[feralcomprehension]

ACAS is now/still ~25% of my total holdings. I did lighten up some, but their finance situation is as good as it's ever been. ECAS is appreciating, all their debt has been refi'd at lower rates, and the BLTs which were preventing a reorg are all paid off. They're still serious, and I expect quite a bit from them over the next 18 months (though to be fair I've been saying that exact thing for at least 4 years). My latest score with them was 300% on an options trade, but unfortunately the initial buy was small enough that the overall impact wasn't much. A recent poster on the YMB noted that there's usually a rise in price after earnings that later turns out to be buyback activity, and that once this activity is over the price softens again. Insofar as I've paid close attention to the stock since '08 I'm anticipating more options trading; the stock seems to always have some sharp downturns every quarter, and indeed, as management are buying back, they don't do much to prevent it. That's an options opportunity.

As far as the GSEs go, I'm in deep- over 30% of my total holdings. Recently when Corker publicly reversed his position that private shareholders would get nothing I doubled my common holdings; been good so far :)