Sunday, August 31, 2008

Something About ALD

Ready to break above short-term overhead resistance, ALD appears to be primed for a move up.

Allied Capital Corporation (ALD) is a private equity company focusing on buyouts, acquisitions, note purchases, recapitalizations, growth capital, and middle market equity and debt investments.

Interesting aspects are:

  • Volume at approximately 2.03 million average shares/day
  • P/E is at 11
  • A dividend of 17.6% (could be cut in the near future, if so we may see a dramatic sell-off)
  • Current price at 52.5% below the 52 week high
  • Steady earnings expected for '08 and '09
  • Insider buying since early June
  • A .65 dividend coming up on 9/10/08

Closing on Friday at 14.75, I am willing to call ALD a buy.