Comments on: Sold ACAS This Morning

By: The Enlightened American » No Escape From ACAS

The Enlightened American » No Escape From ACAS — Fri, 09 Jan 2009 05:46:16 +0000

[...] closing my ACAS position nearly two months ago (see my reasons here), I still get more traffic and questions on ACAS than on [...]

By: Dividend Growth Investor

Dividend Growth Investor — Mon, 24 Nov 2008 20:36:26 +0000

My research shows me that dividend cutters and eliminators should be sold as soon as you hear that the dividends are cut/suspended. I sold ACAS on the day it suspended 4Q for a large loss as well.

The stock has fallen a lot since I sold..

By: Davy Bui

Davy Bui — Sun, 16 Nov 2008 20:48:21 +0000

Jason,

I think you’ve mentioned the Einhorn book previously and I should have paid more attention. I was aware of it but I’m sure like many investors, I’ve got a bookcase full of books to read. Expensive mistake.

I remember my fiance just shaking her head as I was trying to dig into their portfolio, which took me literally days even on that superficial basis. I didn’t even get pricing on bank debt, etc. I should have sold right there based on Warren Buffett’s “too hard” rule.

By: Jason

Jason — Sat, 15 Nov 2008 08:13:50 +0000

Have you read David Einhorn’s Fooling Some of the People All of the Time? His was a battle with Allied Capital, but the whole thing just felt a little too close to home.

I bought ACAS originally in 2002 after the internet bubble had burst at around 19. I figured that with all the accounting fraud going on, faking earnings has to be easier than faking dividends, so I bought some. I felt pretty damn smart for many years, collecting my fat dividend and seeing the share price rise. I bought again when it dipped to the mid 30s, but sold in the mid 20s after reading Einhorn’s book and realizing I really hadn’t done and wasn’t prepared to do the massive holding by holdeing level of analysis that Einhorn did and that you tried to do here.