Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business-development company American Capital
With that in mind, let's take a closer look at American Capital's business and see what CAPS investors are saying about the stock right now.
American Capital facts
| Headquarters (Founded) | Bethesda, Md. (1986) |
| Market Cap | $2.81 billion |
| Industry | Asset management |
| Trailing-12-Month Revenue | $586 million |
| Management | Chairman/CEO Malon Wilkus CFO John Erickson |
| Return on Capital (Average, Past 3 Years) | 4.3% |
| Cash/Debt | $186 million / $1.74 billion |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 2,073 members who have rated American Capital believe the stock will outperform the S&P 500 going forward. These bulls include Zo3adams and TDSWIM.
Late last month, Zo3adams tapped American Capital as a potentially juicy income opportunity: "Have to wait out reinstatement of the dividend, time frame is hard to predict, but if able to wait this is a strong bet."
Currently, American Capital even trades at a paltry price-to-book of 0.6. That represents a discount to much larger financial companies like Goldman Sachs
CAPS member TDSWIM elaborates on the American Capital bull case:
While this stock was beaten up badly during the financial crisis, their debt has been refinanced and they have brought on some prominent investors to take a stake since the crash. As the economy picks up, I expect ACAS to be trading back at pre-crisis levels within 3-5 years. ...
I would recommend getting into this stock before they reinstate a dividend. Once dividend payments resume, I believe that stock price appreciation will be greatly accelerated and you do not want to miss out.
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