Acquire Allied Cap. on Pullbacks
by Sam Collins 09/09/08
Allied Capital Corp. (ALD) -- On July 18, with ALD at $13.95, the Trade of the Day said, "This private equity firm, specializing in buyouts, acquisitions, recapitalizations, note purchases, growth capital, and middle-market equity and debt investments, fell from above $21 to $10.50 in about two months as a result of the financial sector's emotional sell-off. Bottom-fishers willing to take a risk in a business development company (BDC) currently yielding more than 19% could find this gem worth holding."
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Allied Capital broke from a triangle at just over $14 a week ago with a trading target of $18.
Any pullbacks could be a buying opportunity for this business development company that is supported with a dividend yield north of 16%.
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