There are a group of continuous, negative posters on this board that, at least in terms of quantities of posts attempt to dominate this board. These posters generally acknowledge holding no position, short or long in ACAS.

Some of them post multiple times per day, every day, as much as a dozen times per day and more, this represents thousands and thousands of posts over the past year. Most of these bashers come and go, but have a similar negative message and they always seem to get a similar number of posts in under one alias or another.

ACAS has been the recipient of heavy share counterfeiting through naked shorting, as well has high levels of legal shorting activity.

In conjunction with misapplication of accounting rules enforced by a handful of individuals (FASB). This has caused ACAS to write down various performing assets sometimes by 90%, much of their equity holdings have been written to zero. This despite the fact that if the underlying companies continue to perform, at maturity the investments will pay off fully with very attractive rates of return.

Since this FASB group consists of only a handful of individuals, the economic crisis imposed by them may be the result of incompetence, or may possibly been in part engineered by members co-opted. Buying influence has been part of a hedgefund strategy, sometimes through lobbying efforts, much of time by payola that has corrupted members of the financial media, and employees of the SEC and other government entities.

Not withstanding the economic meltdown, choices made by ACAS management have contributed to a situation that have left long time shareholders with substantial loss of the dividend stream they had been receiving. Evidence of this is other BDCs that continue to pay substantial, though reduced dividends, and have seen much less volatility in stock price.

We now have many categories of shareholders, those in around the bottom in March, have roughly a $1 basis, evidenced by high volume days (as an example the 50 million share day in March). A group that has averaged down, probably in the $5-$7 range. There may also be a group that has a much higher basis that has been afraid to add a little bit more of capital to get down to $7 or less. This group still has the opportunity to improve their basis if they act while the price is around $3. Others are scattered in at many other price levels.

Due to a price range of $0.58 to $50, ACAS has become an investment that is already a huge winner for some and and huge loser for others, and every level in between.

In addition, ACAS can no longer be considered a relatively stable dividend paying company. This makes it very unattractive to a large group of investors seeking stability.

The $1/share stockholders clearly have/will become huge winners. The group in at $7/share over time will arguably end up with both capital appreciation and a very attractive dividend. Those that have not averaged down have been left holding the bag and will wait a very long time to recoup their investment, if they do at all.

For the time being ACAS has been tainted. The shame is that the victims are the long time shareholders, who have footed the bill for both a mismanaged economy and, blatantly illegal activity by a small group of wealthy individuals that exploited faults, and indifference in a system, that damn near brought down the entire world economic system.

As it relates to individual companies, including ACAS. It is clear that it is possible to misrepresent and distort an individual company's situation and prospects so as to make it entirely inappropriate for the group of investors it was constructed and intended for.

So, what is next for American Capital?

(to be continued)