S&P 500
7,614.20
-0.11%
Dow Jones
51,322.50
-0.10%
Nasdaq 100
30,639.80
-0.25%
Russell 2000
2,930.08
-0.10%
FTSE 100
10,374.00
-0.13%
Nikkei 225
68,479.20
+1.45%

Banking, finance, and taxes

American Capital: Proof Paulson Still Sought After (ACAS, GS)

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
American Capital, Ltd. (NASDAQ: ACAS) had a big trading day, despite the news being perhaps a bit muted due to Friday’s SEC fraud charges filed against Goldman Sachs Group Inc. (NYSE: GS).  We won’t bother telling you the news of the fraud that you have already read about dozens of times.  American Capital priced a $295 million registered direct offering of common stock to a group of institutional investors to sell 58.3 million shares of common stock at $5.06 per share.  The big news is that 43.725 million shares in the offering were sold to funds and accounts managed by Paulson & Co. Inc.

All of the net proceeds near $295 million in capital is being used “for general corporate purposes,” which includes investment and lending activities and to repay debt under existing obligations.

There is another situation here as well, and that Paulson & Co. is showing that it is not concerned that it will be tarnished by the SEC charges against Goldman Sachs.

American Capital shares are up 6.4% at $5.67 right before the closing bell on over 15 million shares.  If you look at the drop seen in American Capital on Friday, that was nearly a 6% drop.  Today’s gain is a mere recapture of what was taken away on Friday.  Shares had hit a new high of $6.08 earlier this morning before coming off throughout the day, and the old 52-week trading range was $2.08 to $5.75.

JON C. OGG

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Continue Reading

Jon C. Ogg |

The Unusual Suspects (AVAV, AAPL, BSX, C, GGP, GS, HSP, LULU, PALM, GLD, FAZ, FAS)

This weekend’s edition of the Unusual Suspects would have probably been all about earnings, earnings, earnings.  Friday’s SEC-Goldman news changed…

Jon C. Ogg |

Goldman Sachs, SEC Charges With Hand in Cookie Jar (GS)

Goldman Sachs Group Inc. (NYSE: GS) was already getting negative press for profiteering from the demise of the mortgage market. …

Jon C. Ogg |

Paulson Inadvertently Kills Gold (GLD, NG, KGC, AU, GFI)

We aren’t going to bother telling you the news on Goldman Sachs being charged by the SEC with fraud over…

Douglas A. McIntyre |

GOLDMAN SACHS GETS GUILTY UNTIL INNOCENT TREATMENT

Goldman Sachs Group (NYSE: GS) may have done several terrible things including an alleged sale of mortgage-backed securities to financial firm…

Jon C. Ogg |

Paulson Dumps Financials, Shows New Sector Picks (GENZ, SYMC, BRCD, C, GS, BAC, JPM, COF, AU, GLD, APC, DVN, XOM, CMCSA, HOT)

It is 13F season and investors are looking to see what their favorite gurus are up to.  While  everyone is…

Douglas A. McIntyre |

The Bank Stress Tests: The Curtain Comes Down On The Best Show Of The Year

The most exciting day of the financial year should have been today because the government releases the results of its…

Paul Ausick |

The 52-Week Low Club for Monday

March 28, 2016: Here are four stocks trading with relatively heavy volume among 36 equities making new 52-week lows in Monday’s…

Chris Lange |

How the Major Banks Fared This Earnings Season

24/7 Wall St. has been tracking the major banks over the course of this week to kick off corporate earnings…

Wal-Mart, Chevron Lead DJIA Friday Surge
Paul Ausick |

Wal-Mart, Chevron Lead DJIA Friday Surge

September 30, 2016: Markets opened higher again Friday after Deutsche Bank CEO John Cryan assured employees that the bank’s capital…

Top Gaining Stocks

Hewlett Packard Enterprise
HPE • Vol: 153,197,465
Enphase Energy
ENPH • Vol: 8,360,053
Corning
GLW • Vol: 18,152,646
Alexandria Real Estate Equities
ARE • Vol: 4,337,015
Aptiv
APTV • Vol: 6,761,325

Top Losing Stocks

Trade Desk
TTD • Vol: 21,905,513
Intuit
INTU • Vol: 7,383,018
Coterra Energy
CTRA • Vol: 73,319,495
Cboe Global Markets
CBOE • Vol: 5,000,011
HP
HPQ • Vol: 29,259,826