Monday, November 10, 2008

Allied Capital finally cuts its dividend

Oh yes. Allied Capital (ALD) finally announced that the pyramid scheme (they don't use that term) has finally stopped growing, and they've cut the dividend. The stock is down $3.18 to $4.12 (for the non-financially savvy, when the amount of the decline is similar to the remaining price of the stock, it's called "a very bad day").

David Einhorn was absolutely right, people. He wrote a book about it (i.e. how ALD was a fraud) a while ago. It's time for the Allied apologists (one of whom I did a post on earlier) to admit that they were some combination of stupid and dishonest, and that they were wrong and they're sorry, unless they put their money where their mouth was in which case they already got what was coming.

From $30 to $4. What can you say now?

["Better safe than get investigated" disclosure: I work at a firm that used to have a short position in ALD.]

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