On Wednesday, 4/7/10, I sold 2 ACAS Aug10 7.50 Covered Calls for a net deposit of $38.46 in an IRA account.  My basis for these ACAS shares is now 23.27, excluding dividends received.

I’ve been sitting on these ACAS shares since my last Calls expired worthless in Aug09.  ACAS has had some financing difficulties and even some concern about them being able to continue in business.  Recently they were able to announce an extension of a credit line lock up agreement to May 31, 2010.  That is not too far away but does suggest that things are not as bad as they once were.

I can’t find the reference right now but I believe there have been some attempts to buy out ACAS.  The offer was refused.  I don’t remember seeing any other references regarding a buy out.

ACAS share price has been generally trending upward for the past year, with the usual pull backs from time to time.  It has been trending upward pretty consistently for the past two months and is trading at 5.62 as I write this.  I really don’t know what to expect going forward but suspect that the 7.50 strike in August will probably allow these current Calls to expire worthless.

ACAS has not paid a dividend since Aug09.  The dividend at that time was $1.07 per share.  However, the dividend was prorated between a cash payment .19 and additional shares at .88.  The result for me is that I received an additional 54.9586 shares of ACAS.  I continue to hold those new shares although I can’t say why at the moment.  It could be that I just forgot about them because I had to do some research just now to understand why I had two dividend entries back in August.  Now that I know again I need to think about what to do with them.  I should either sell them or buy 46 more so I can sell Covered Calls on them also.  Certainly I should sell the fractional share.