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I came over from the ACAS, where I got burned chasing yield a bit. Just thinking back, where I thought the dividend was safe ... until it wasn't.

I was involved with ACAS since 2004. It was a good income provider for me until the world was disrupted in 2007-8-9. The world was supposed to end and they cancelled the declared $1.07 dividend when financing closed. The stock pummeled to SUB ONE DOLLAR TERRITORY in a short time frame. Most people were petrified because the "world was definitely ending" While most people weren't paying attention to was----that during all the meltdown ACAS PAID EVERY DEBT OBLIGATION THEY HAD ON TIME AND WITH PENALTY INTEREST OF 2% to 3% extra. The banks were screaming for even more money. Finally Malon Wilkus told the banks to shut up-take the money with the penalty interest they had been paying OR---ACAS WOULD DECLARE VOLUNTARY BANKRUPTCY AND ALLOW THE JUDGE TO HOLD THE MONEY IN COURT and DECIDE ON HOW MUCH ACAS SHOULD PAY.

The banks shut up and took the money and never made another peep. Needless to say that's when ACAS dropped to $0.59 per share and management declared options to management based on that $0.59 price. It was a signal to buy and millions and millions of ACAS shares were traded in the $0.60 to $0.75 area. We were buying numerous 5000 share blocks after the announcement of the options given to management. A few months later ACAS had recovered to about $3.20 a share when the re-declared the $1.07 dividend after they had received permission to pay the $1.07 IN CASH** OR** STOCK. I and many others chose ALL STOCK. It went X-Dividend about a week later. Here's where the money was made. The stock dividend was about 33.3% of share price on declaration day. On x-Div day the stock never dropped more that about 10% to $2.90 and there was a long timeframe to dividend payday (Somewhere about 3 or 4 months later). And by stock dividend pay day the old and newly received stock dividend shares were trading around $6 or $7 and moving higher.

For those paying attention there were a LOT OF POSITIVE SIGNALS
In the worst days when ACAS was trading SUB $1.00 the NAV was never below about $7.50 per share and they were never in monetary default-Never Not $0.01 worth. They were in default of bank covenants on their debt- But never monetary default

good luck
b&w
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