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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (15427)	9/11/2002 1:02:37 PM
From: Bob Rudd	Respond to of 78683

ACAS ALD - There's been considerable prior thread discussion so I'd suggest a search. Beyond that, the central issue is that both companies are sort of black box...they have assets that are not regularly traded. The shorts contend that these assets are carried at too high a price and markdowns are coming. They also contend that borrowings/equity issuance are necessary to support dividends. Here's an article on short view of ALD: news.cnet.com ALD was hit first, but now ACAS has a more rapidly rising short position: nasdaq.com Both companies have refuted the short arguments with position papers available on their websites. Here's a recent one from ACAS: acas.com Both appear somewhat undervalued IF YOU TRUST THE NUMBERS.

To: Wallace Rivers who wrote (15427)	9/13/2002 3:29:37 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78683

I'll add a bit to my position in ACAS here. I am betting the dividend compensates for the risk of this business being a business development corporation. That being a "black box" in which you "have to believe the numbers" as Bob Rudd has stated. finance.yahoo.com (I missed lows early today. I plan to add more if stock drops close to again.) Paul Senior