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Stocks A / Ares Capital Corporation
URL: https://boards.fool.com/hey-gustav-thanks-for-breathing-a-little-life-26522365.aspx
Subject: Re: Right Offering?	Date: 3/31/2008 5:19 PM
Author: Knifecatcher1	Number: 3 of 78
Hey, gustav, thanks for breathing a little life into this dead board. I don't know what to think about the rights offer. It gives shareholders a chance to buy at maybe a 5% discount to market, of course depending on the ending exercise price. This kind of thing is brand new to me. I may call the company and ask for some hand holding to help decide how to buy more shares. The rights showed up in my Scottrade account today. They have a current nominal value of 0.56/share, and I think if they're not exercised they'll just disappear again from the account. As for ARCC itself, it looks very cheap on a revenue basis, as well as earnings, price/book, steady and increasing dividend. On the other hand, being a small company in this credit-constrained environment is a dangerous place to be. I have a modest position in ARCC that's under water, but I think it's strong enough to pull through, at least for now. Not sure I want to add more shares right now. I have more questions than answers on this one, and I'd be glad to discuss and hear opinions. Regards, kc
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