Author Topic: ADS - Alliance Data Systems  (Read 71381 times)

Foreign Tuffett

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Re: ADS - Alliance Data Systems
« Reply #300 on: May 15, 2019, 06:59:31 PM »


undervalued

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Re: ADS - Alliance Data Systems
« Reply #301 on: May 15, 2019, 09:11:31 PM »
Glenn Greenberg also sold some of his holdings.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

mwtorock

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Re: ADS - Alliance Data Systems
« Reply #302 on: May 16, 2019, 12:02:25 PM »
Glenn Greenberg also sold some of his holdings.

kudos to them if they sold before the deal announcement. that was a disappointment.

abitofvalue

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Re: ADS - Alliance Data Systems
« Reply #303 on: May 16, 2019, 06:15:27 PM »


Definitely looking more and more likely that this is the end game.....either way I haven't seen many opportunities (except for extreme market dislocations) to buy rapidly growing businesses with 30% returns on incremental capital selling at this multiple.  By the way does anyone think that there is a company that could more profitably deploy the card business assets within their business model? Is there another company that anyone can think of where synergies are significant and where it makes sense to transfer ownership?  Thx

Discover..   couple of yrs back dfs said only way they would get into private label is of they could buy something big.  Dfs partnership with SYF may be an issue . But maybe not.   Guess arguably syf could also buy it and create a Pvt label powerhouse.  Don't see any large being interested or getting approval.. well maybe Citi but unlikely

Other option would be a China union pay / Amazon Pay type that wanted to expand acceptance into stores rapidly... But that likely has more issues that I am forgetting as I spitball.

Private equity could be an interesting owner though maybe too cyclical. Valuation would need to fall more before they got interested imo. 

« Last Edit: May 17, 2019, 11:12:39 AM by abitofvalue »

decko

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Re: ADS - Alliance Data Systems
« Reply #304 on: May 28, 2019, 09:16:33 AM »
 How effective or destructive is the secular downturn in physical retail to ADS?  Also, is there a shift away from CC's to digital (paypal, etc)?   Depending upon the answers is ADS a melting ice cube?

glorysk87

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Re: ADS - Alliance Data Systems
« Reply #305 on: May 28, 2019, 10:21:41 AM »
How effective or destructive is the secular downturn in physical retail to ADS?  Also, is there a shift away from CC's to digital (paypal, etc)?   Depending upon the answers is ADS a melting ice cube?

It hurts them, at least in the short-term, evidenced by the amount of receivables they've had to either wind-down or sell off over the past year or two, mainly as a result of outdated retailers going bankrupt (eg. BonTon, Gander Mountain). I don't think this trend is permanent, but more a temporary air pocket. ADS is seeing success signing up new retailers (eg. Carter's) that are more successful, as well as digital players (eg. Houzz, Wayfair). These new portfolios will take time to spin up, but I don't think it's a stretch to see ADS returning to growth. I don't think there is much if any structural change to the business.


KCLarkin

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Re: ADS - Alliance Data Systems
« Reply #307 on: June 08, 2019, 06:31:12 AM »
New CEO sounds promising

Broeb22

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Re: ADS - Alliance Data Systems
« Reply #308 on: June 08, 2019, 05:59:46 PM »
New CEO https://www.sbnonline.com/article/alliance-data-kicks-into-high-gear-under-melisa-millers-leadership/?all=1

We believe high-growth companies have to double in size every five years, and so our plan always keeps us on that path, Miller says.

When a CEO of a financial company says that, its not very encouraging to me.

Spekulatius

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Re: ADS - Alliance Data Systems
« Reply #309 on: June 09, 2019, 04:13:07 AM »
New CEO https://www.sbnonline.com/article/alliance-data-kicks-into-high-gear-under-melisa-millers-leadership/?all=1

We believe high-growth companies have to double in size every five years, and so our plan always keeps us on that path, Miller says.

When a CEO of a financial company says that, its not very encouraging to me.

She said the same thing 4 years ago.
https://www.columbusceo.com/content/stories/2015/12/qampa-melisa-miller-of-alliance-data-card-services.html
To be a realist, one has to believe in miracles.