American Capital Ate Wheaties For Breakfast + Minefinders non-update

What else could explain the 11% pop in ACAS, bigger than most other financials today?

Well, besides Wheaties, perhaps the pending “new” rules on naked short-selling might also have something to do with it.  It’s interesting to see another position, Minefinders (MFN), up 16% today as that stock allegedly has a big naked short position according to Jim Puplava’s radio show.

Nevertheless, both positions are still far below initial entry points.

As I mentioned in my last post as well as my previous report on ACAS, dropping share prices led me to closely re-examine some positions.  Perhaps the share price influenced me more than it should have.  As Warren Buffett says, if you aren’t willing to see the stock drop 30% after you buy it, don’t buy it.  But 50%+ drops are probably another matter (maybe even in Warren’s book).  At this last sell-off, I had complete confidence in my ACAS position.  If it does not reach the levels I have projected ($45 – $50) in the upcoming years, it will probably be due to the dismal state of the American economy and not the fault of the management.

As for Minefinders (MFN), I did not post a Q3 earnings update, though readers can rest assured I pored over the results and conference call.  Apparently, the company is the target of an extortion campaign.  I was contacted by one of these “activists” after my last Q2 update post.  As there are few sources of in-depth analysis on the company available online (for free — you’re welcome), I did not want to give these questionable parties any further insight.  So let’s just say that I have increased exposure to the stock and leave it at that.

Fun markets, eh?  Be safe out there.

More on this topic (What's this?)
ACAS is a Bargain Worth Buying
American Capital Strategies (ACAS) Dividend Analysis
Read more on MineFinders, American Capital Strategies at Wikinvest

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