Why ACAS is not a good long time investment ?

The jadedconsumer is fan of ACAS and has some compelling analysis of why ACAS is good long term value. I respectfully disagree with his views. Here is my take on ACAS.

I was considering buying when the stock looked cheap on valuation measures like P/NAV etc. Here is why I did not and will not invest. Let me be also clear that I would also like to invest for the long term i.e. forever if possible. If you look at the source of equity for ACAS, most of it comes from share issuance and if you examine equity over a number of years it can be proven that ACAS used the famous strategy "WEB" has warned against - taking money from "Jane" and giving it to "John" for a number of years and last few years more seems to be coming from earnings than Jane's contribution, still Jane's contribution trumps actual earnings contribution. Also ACAS is more like an REIT which has to pay out 90% of what it "earns" and the remaining 10% is not enough to finance its portfolio companies so it has to go to the "Jane" time and again to raise equity to keep with the 1:1 debt covenant. So although the debt-to-equity looks below one, most of it is Jane's contribution. So although it sounds attractive, its not a good proposition. For a long term investor - today when I want to invest, the dividend for last 10 years is history and is worth nothing and the next dividends which will come from what the underlying business will earn has more meaning. But only 10% has been retained and most years what has been paid came from "Jane". So your investment jadedconsumer's thesis ACAS as a long term investment is flawed. However I must agree that if you stay in it for 2-3, you are likely to profit from "price speculation" rather than "value appreciation". Most appreciation will come not from a sound investment thesis but from the speculative aspects. So the question becomes just because you profit on the price (1-day, 2-3 years), does it make a favorable long term investment in terms of investment in a value producing underlying business ?