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ACAS recent story has been just amazing.
The stock got battered down after an UBS analyst rated it a sell and forecast a big loss on write down due to new regulation. ACAS indeed posted an incredible loss of nearly one billion whilst their business couldn't have been better!
The write downs due to Fair Value Accounting is irrelevant since the assets will be kept until maturity and won't be sold on the open market under any circunstance.
The management made that abundantely clear in their report. They reiterated their upbeat guidance.
On top of that the board increased the dividend one more time. At current prices it yields 12.5%.
Finaly investors kept faith in ACAS: The stock moved from $29 after the UBS downgrade to 32.82.
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