Fear vs reality for ALA1. Clearly a savings on interest costs for ALA
2. However their release says it is for debt payment and :general corporate purposes" which could mean in some people's minds that their ER is slowing or expenses rising and only a portion will go to debt and the rest to deal with bad news or slowing earnings etc.
3. However by end of 3rd quarter they held to their year end FFO as 850-900 mm
7. But S&P indicated about 700 mm based on their 10 times figure
Fitch seemed more [positive on their credit metrics altogether than S&P
8. But supposing those corporate purposes were to all a small dividend increase to show th emarket that they see a positive future??? Is that possible.
9. The uncertainty should not last long as their new capital plan will be out before Dec 31st - I checked with their Investor staff and they may have just been waiting for the two last releases on credit ratings now STABLE ( raised- always a positiv efor the market) and the new bond issue.
10. markets hate any uncertainty so my conclusion is that ALA is agaion on sale and will not stay below $19.50 very long
11. But becasue of a relativerly small volume and thuin trading the movements can be exaggerated for short periods of time. I think their capital plan release will right the ship and their next ER report so I would be a buyer here nothing long term negative here only longer term positives IMO