BlueStone Capital Partners Announces Investment Opinion on Allied Capital Corp.NEW YORK--(BUSINESS WIRE)--Nov. 4, 1999-- BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners, L.P. Initiates Coverage on Allied Capital Corp. (ALLC ALLC Association for Literary and Linguistic Computing ALLC Allied Capital Corporation (stock symbol) ALLC Army Logistics Leadership Center (Red River Defense Complex, Texarkana, TX) ) with a 1-1 Rating Senior Analysts Jeff L. Evans and Walter V. Nasdeo of BlueStone Capital initiates coverage of Allied Capital Corp. (ALLC-NASDAQ) with a 1-1 Outperform-Outperform. The 12-month target price is $27.00. Long term, ALLC could achieve a price target of $30.00, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the analysts. Analyst's Summary - We are initiating coverage of Allied Capital Corporation with a 1-1 Outperform-Outperform rating and a 12-month price target of $27.00, based on a P/E P/E See: Price/earnings ratio of 14.7 times our 2000 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. estimate of $1.84. Our $30.00 long-term price target represents a 14.2 multiple to our $2.12 EPS estimate of 2001. - Based on price, this represents a 29% premium to current levels. We believe that significant price appreciation is possible. However, even if the share price fails to appreciate, possible downside risk Downside Risk An estimation of a security's potential to suffer a decline in price if the market conditions turn bad. Notes: You can think of this as an estimate of the amount that you could lose on a stock or other investment. is ameliorated by the strong current dividend of approximately $1.60. Thus, we believe that Allied Capital is an attractive investment alternative for investors seeking both growth and current income. - As the largest business development corporation (BDC (Backup Domain Controller) In a Windows NT server, a copy of the Primary Domain Controller (PDC). The BDC is periodically synchronized with the PDC. See PDC. BDC - Backup Domain Controller ) in the U.S. and a leading player in the mezzanine finance arena, we believe that Allied Capital is well positioned to provide a support mechanism for middle-market, emerging-growth consolidators. - Allied has become the largest BDC in the U.S. A larger asset base has allowed the company to make more substantial investments while still maintaining portfolio diversity. Allied's scale has enabled it to advance its objective, becoming the mezzanine lender of choice among private-equity firms. - Allied Capital has a portfolio of more than $800 million in assets and we expect will report income of approximately $142 million in 1999, a 33% increase over income of $106.7 million in 1998. - Allied has 624 borrower relationships broken down as 102 mezzanine loans, 103 real estate loans, and 419 small-business loans. - In addition, Allied is active in the SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government 7(a) lending program. To reach an even greater market, Allied launched its website, www.AlliedCapitalExpress.com on November 1, 1999. Small business owners can now apply for financing on line, 24 hours a day. Potential borrowers can find out in two business days whether they are qualified for a loan. BlueStone Capital Partners, L.P. is a full-service investment banking and brokerage firm that delivers financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to emerging growth and medium-size companies worldwide. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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