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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (12307)	5/4/2001 11:18:42 PM
From: Bob Rudd	Read Replies (3) \| Respond to of 78516

I started a position in ALLC on 4/24 and added to it yesterday with average cost of 22. The recent CC reassured that true telecom exposure was negligable [3% or so, I think]. I've seen several comments that management really knows their stuff, and I came away from CC with that impression. They're into some risky stuff, but they seem to know what level of seniority [of debt] offers favorable risk reward and they're well diversified. One thing I really like that differentiates them from most financial entities is that they have relatively little leverage. Many finance/bank entities are teatering on 10 - 1 debt ratio which leaves nearly no room for error. These guys are very conservative with 1/1 debt/equity. The $2 dividend [9% @ 22] should grow 10% over time with earnings growing a bit faster than that. I read an Alex Brown report that knocked them down, and didn't see anything to worry about [They might not grow quite as fast as we'd expected - that sort of drivel]. Merrill likes them a lot, but they're doing an underwriting so opinion may be colored. I'll probably add more on dips.