BETHESDA, Md., June 17 /PRNewswire/ -- American Capital Strategies (Nasdaq:ACAS) announced today that Hilliard Lyons has commenced coverage of American Capital with an initial ``buy'' rating of its stock.
John Roberts, Vice President, Hilliard Lyons conducted an independent analysis and visited the senior management of American Capital. He wrote, ``The company is attractive because of its high growth characteristics, undervaluation, good dividend yield and attractive business fundamentals. We find ACAS to be attractively valued in relation to other specialty lender/finance companies at its current price of $23 3/4 per share, versus our fair value estimate of $27-$30 per share, 15-25% above the current share price.''
American Capital Chairman, David Gladstone stated, ``We are very pleased that John Roberts at Hilliard Lyons has begun to cover American Capital. Being on John Roberts' ''buy list`` is a great endorsement. He has a tremendous track record of picking winners and we are delighted that he sees the future of American Capital as we do. We believe that the clients of Hilliard Lyons will benefit handsomely from owning American Capital stock.''
The Hilliard Lyons report stressed two of American Capital's strengths: its record of rapid and effective capital deployment, and its ability to generate significant advisory fees as well as investment income. According to Mr. Roberts, ``ACAS has been able to ramp up its lending activity much more quickly than had been initially expected. ACAS' management in putting assets to work has enabled the company to generate a very high level of earnings growth. ACAS has assembled a very impressive management team.''
Mr. Roberts' report continues, ``Most importantly it offers advisory services to companies, generating steady fee income. In addition, it provides expertise in structuring and participating in ESOP transactions with companies and their employees.''
Malon Wilkus, President and CEO of American Capital said, ``After a very thorough analysis, Hilliard Lyons has done a fine job presenting the basic philosophy and underlying positive fundamentals of American Capital. We are pleased to see that he recognized our growth prospects and the potential it has to increase shareholder value.''
The Hilliard Lyons report on American Capital can be obtained by calling Hilliard Lyons at 800-444-1854. An investor package on American Capital can be obtained by calling Investor Relations at American Capital at 301-951-6122 or visiting its Web site.
