Replies to post #6370 on Fannie Mae Preferred S (FNMAS)

[Joe Stocks]

Other stocks to watch: ACAS

I own some ACAS as well as a couple other BDCs; PSEC and TICC.

I think you price targets are high. BDCs tend to sell closer to NAV value. ACAS's last reported NAV was $17.84. Since they do not pay a dividend they don't attract the income buyers so they will sell for a discount. I also think we are headed to another recession which also weighs on BDCs as recessions are hard on the smaller businesses they invest in. I don't see how ACAS will be able to build it's NAV per share up to $30 in 2015 in the current, and my vision on the business environment ahead.

Just my opinion. I know several here own ACAS.

One area I think everyone should be looking at is right here in our back yard. Mortgage insurers. FnF will be bending over backwards to send business their way. GNW, RDN, MTG, AIG