Replies to post #15796 on Zeev's Turnips Patch-No Politics (ZEEV)

[Bruce A Thompson]

Marginnayan,

Your friend is correct. The type of investments that ALD makes are illiquid and do not lend themselves to a mark to market valuation. As a result, ALD carries the vast majority of their investments on the books at cost. Any other way of doing it would result in numerous "Proforma" profits being restated later. In this market, that would be the kiss of death. As it is, they make huge profits on their investments.

Recently, a well known shorter with a subscription following issued a short recommendation and set the class action lawyers loose on the company. His only issue is that ALD refuses to mark to market and issue proforma earnings. He is barking up the wrong tree and his followers are now paying the price.

Bottom line is that ALD is the leader in their industry. They are not some fly lately dot com. They have not missed a quarterly dividend payment in over 40 years. They are extremely strong and, as a result of the recent hysteria created by the shorters, are yielding over 10%.

There is a lot more on this subject on this thread including links etc. Do a search of ALD and you will find the whole story.

BT