Allied Capital: Wall Street's Double Standard

Back to Allied Capital (ALD) for a moment: The stock has been up ever since Fitch reaffirmed its rating on Allied's debt. (S&P is currently reviewing its own rating.) Ever notice that stock investors ignore rating downgrades, but not upgrades or (in the face of controversy) the decision to do nothing? Such is life in the fast lane.

And speaking of Allied: A Motley Fool piece out yesterday regarding Allied tried to chip away at my credibility (or lack, thereof, depending on your bias) on Allied. Noting that I have raised question about whether Allied was somehow connected with a break-in of my phone records -- something in which Allied recently denied having any involvement, the writer wrote: "Is anyone surprised that Greenberg continues to cover Allied Capital with extreme prejudice, as noted in his recent headline, "Allied Capital seeks to 'clarify' news about fraud charges."

No idea what he's talking about when he mentions "prejudice" in connection with that headline -- the company itself said it was issuing a statement "to clarify potential misperceptions resulting from media coverage" of an indictment of a former exec of its biggest portfolio investment -- but I will say this and say it very clearly: I do not "cover" Allied or any company or industry. I write a commentary column (and blog) that touches on dozens and dozens of different companies, some more than others depending on how compelling I consider the story or subject. My history writing about this company is very public, and the phone break-in, regardless of who was behind it, is now merely part of that saga.

Again: Allied says it didn't do it and doesn't know who did. We'll take them at their word. So what if it took them two years to respond to my inquiry! End of story. (For now.)

Earlier posts: Allied: More Investigations Underway? and Allied Capital: The Angst Continues