Alliance Data Systems Corp (NYSE:ADS)

Fool screen: roe 17, own 5, rev incr 15, profit incr 15, midcap

Good

The chart doesn't lie. Since the recession in early 2009, ADS has rallied just over 235%! Why this has only been rated as a 1 or 2 on CAPS is beyond me. Alliance Data has been growing and growing, and I foresee additional growth in the future.

With Airmiles going on- line reservation system finally it has a better chance of making more if
the call centres go 24 hrs as I have always said
to mgnt over the last 10 yrs.

High debt, suspicious leap in receivables.

growth

good cashflow, growth rate, good forward P/E

Short interest: 35% of float

ADS has been a gorilla of a stock for the past 6 years for me. Diversified company that has been beaten down of late due to some unsubstantiated (in my view) bad press. Chart tells me this is a $75 stock over the next 6-12 months. Soros has been a fan and so am I.

Great pitch from TMFDeej. Lets see how it goes!

Lot's of insider selling.

Extension always means reaction.

With the market very close to what I think will be its high for several years, this company looks richly valued considering that its revenue has been dropping.

ADS has expanded and diversified its business over the past 5 years so that more than its revenues come from services / products that do not depend on credit card issuance and transaction processing and that are not impacted by consumer risk. As such, the company isn't a pure credit play and that should be taken into account when analyzing the stock. Based on historical performance and continued guidance, I still believe that this is stock has not lost its ability to deliver earnings as a mid-cap growth stock on its way to Fortune 100 positioning.

bullish rsi

the core business is still strong

you cant track consumers when you dont know about the stability of the country

TM - big share repurchases on the way. Long-term hold.

Restructuring by elimiting the utilities arm will allow ads to maximize their growth engines which have long been the retail and loyalty divisions. This stocks also been beaen down unfairly in the wake of the Blackstone mess. Recent investments by big players such as Ichan bode well for ADS. It appears they are making the tough decisions that will pay off well for those that are able to see the forest through the trees.