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


To: E_K_S who wrote (46781)2/28/2012 11:37:08 AM
From: Grommit  Respond to of 78748
 
> What's the best way to value companies like ARCC.
Your ideas are good. They just earned > the dividend, and raised the dividend. Don't overthink it. :o)

>When did you first discover the company and what attracted you to it?
I bought shares last summer. Your observation (below) about performance during the crunch is what convinced me to make the bet.

>I tend to shy away from these management investment companies as I always thought they were high risk.
I agree because I got burned on ACAS. Fortunately, ACAS tanked when pref shares were also down, so I traded my losing ACAS for cheap pref shares (remember the days) which have since doubled+.

>However, their performance during the 2009 market crash has been quite good.
yes -- very reassuring. the dividend only dropped a little. note that ARCC invests mainly in loans.
snl.com