Stewart Gordon

Allied Capital Corporation Earnings Call Transcript

ALD has long dividend paying record;at one point or more in its history,present shareholders had the opportunity to buy into new financing. ALD has done, I think, 3 financings in the last year that are or potentially are dilutive. They extended the annual meeting vote on a NEW proposal to allow them to sell stock below NAV. I do not understand failure of analysts to question these actions or proposed actions; in their pre-directors' meeting document, they specifically said they had an unusually large number of smaller investors. I can only assume many, like myself,hold ALD for dividend income; suddenly ALD is accepting dilution and asking unlimited (no time or $$ limit) approval for stock sales below NAV with even greater dilution. Neither ALD nor analysts mentioned "boo" about this; as a near 20 year holder of the stock I was left with the feeling this meeting was an accounting session and certainly not tactically nor strategically for investors of any size.If the analysts don't think this will affect the stock price, thats their business;if Bill Walton doesn't think that will affect shareholder continuity, it is sad. He should have addressed these events as shareholder concerns.
I think most of us have accepted Mr. Einhorn was a sore loser; we did not believe ALD would abandon the reason for its shareholder loyalty and diversity. Mr. Walton's failure to ensure it was discussed today in a public forum convinces me we have been wrong.