Opinions
Gordon Reid
AllianceBernstein Holding LP
AB-N
HOLD
Nov 13, 2013
Stock price when the opinion was issued
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Bought about 2 months ago. Was a Top Pick for him some time ago. Pay out virtually all of their income, so there is lots of distribution room. When we see very low interest rates, a company that can produce this kind of income and be in an area that is expanding, then there is room to go here. 5.9% yield. Thinks they can bump this up.
Has had a pretty good run. Thinks they had an over concentration in bonds on their retail side. Bond area is a larger percentage of their business than other firms. There was a huge exodus in late June and into early July from bond funds when rates started to move up,. Because of their exposure, they suffered a little bit. Has started to recover in the last few days. Thinks this is a good long-term holding. 7.4% dividend yield.
This is an income stock. It pays out most of its income through distributions. There is some opportunity for growth, but it will be a little bit more sensitive to the bond market as they have a fairly large bond portfolio. Good operation and great distribution of about 7%-7.5% annually.
(A Top Pick April 11/13. Up 16.71%.) Basically a money management operation that is a partnership so distributions are very high, running anywhere from 7%-9% annually. Just came out with earnings and he was disappointed. Expected $0.41-$0.42 a share, but they only came out with $0.39. Part of the problem is that in past days the expectations or revisions have grown because they have a fairly big component of their book in bonds. Bonds did fairly well in the 1st quarter.
The wonderful thing about this is its distribution. At this time they pay out about 7% annual distribution. A really nice income vehicle. Their book is heavily allocated towards fixed income, which has shown some sensitivity. Longer-term, this remains a good holding.