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Strong financials despite the crisis

ACAS' balance sheet currently has a cash cushion of just over $37 million. The debt they carry though, amounts to over $4 billion. This is prudent leverage on the assets that the firm has under management, and the annual operation margin (for a trailing 12-month period) is a strong 72%. Despite the accounting write downs, cash flow is still very strong in this company, with over $400 million in operating cash flow on a trailing 12-month basis.

Revenue declines will bottom in '08, and next year (2009) a return to high annualized revenue levels of about $1.3 billion. This estimate is in line with the analysts' best guesses as well, although some 2009 revenue estimates range as high as $1.5 billion. This is a great long term opportunity as it makes its transition through the trough of the financial crunch.

ACAS pays a significant dividend to its shareholders, with the latest distribution being $0.31 per share payed for the most recent quarter. Annualized, that's at least a 5% dividend yield on today's price of $22 per share.