With that in mind, let's take a closer look at American Capital and see what CAPS investors are saying about the stock right now.
American Capital facts
Bethesda, Md. (1986)
Founder / Chairman / CEO Malon Wilkus
Return on Equity (average, past 3 years)
Cash / Debt
$360.0 million / $662.0 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 2,056 members who have rated American Capital believe the stock will outperform the S&P 500 going forward.
American Capital continues to buy dollar bills for 70 cents by repurchasing its own shares at a discount to tangible book. So long as the stock trades at a discount to NAV, the company will continue to create shareholder value through the repurchase; if and when the price catches up with NAV, the resumption of a dividend could act as a catalyst for the share price.
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The article Why American Capital Is Poised to Keep Poppin' originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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