ADS - Alliance Data Systems

[kab60]

Much appreciated. I have a lot to learn in this space.

[mwtorock]

a couple of good managers hold large positions in this name: Jeffery Ubben and Glen Greenberg. just want to add one point about the management - they are good if you look back what they did during financial crisis:
1) Buy back shares in a big way
2) Expanded credit business when other credit guys had to cut back
3) They did not lay off people to cut cost

[Cameron]

a couple of good managers hold large positions in this name: Jeffery Ubben and Glen Greenberg. just want to add one point about the management - they are good if you look back what they did during financial crisis:
1) Buy back shares in a big way
2) Expanded credit business when other credit guys had to cut back
3) They did not lay off people to cut cost

yeah both those managers owned Valeant.

[Cameron]

I think Jeffery Ubben handpicked Pearson as well.

[mwtorock]

yeah, Valeant is a tough one for many.

[Cameron]

Here is their credit card agreements with different companies

https://www.consumerfinance.gov/credit-cards/agreements/issuer/comenity-bank/

Has a 28% ROE and 4% ROA. sort of crazy.

https://research.fdic.gov/bankfind/detail.html?bank=%2027499&%20name=Comenity%20Bank

[Cameron]

Might be of interest as well.


https://secure.utah.gov/uccsearch/uccs/result#

[vince]

hey Cameron, are u saying that Jeff and Glenn's records are no good anymore because of valeant?  the number of investors with good re cords that got burned by vrx is a head scratcher but to disregard a stock, where 2 phenomenal investors have large positions and 1 has board representation is probably a little shortsighted, no?

[Cameron]

hey Cameron, are u saying that Jeff and Glenn's records are no good anymore because of valeant?  the number of investors with good re cords that got burned by vrx is a head scratcher but to disregard a stock, where 2 phenomenal investors have large positions and 1 has board representation is probably a little shortsighted, no?

No, more had to with the idea that other investors being invested in a stock isn't a real reason to own it. ie Buffett with IBM, Jeff and Glenn with VRX, Einhorn and New Century. I didn't like the stock because they aren't transparent at all with the 2 banks they have, pawn off their EBITDA numbers as if they have no idea that something like 60% of it comes from those two banks pretty much turned me off. We would all scratch our heads if JPM or C were to be ecstatic about their EBITDA numbers. They also provide nothing as to their credit quality and based on the little info that is public it looks like the credit they hold isn't of the best quality.

Whoever owns it doesn't change the fact that its a subprime credit card company.

[WayWardCloud]

It looks like Allan Mecham increased his stake in ADS by a lot during Q1, now standing at 14% of his portfolio. Way out of my circle of competence though