I started buying AB in the mid 20s thinking they would get their act together. Earnings and the div payout have improved BUT its still a dog, any opinions.
As assets under managment at present have fallen to $410 Billion from over $800 Billion in 2007; the income (EPS) has dropped from over $4 per share to estimated 70 cents per share in 2011.
AB needs to cut costs, and inccrease assets under mgmgt to get price to go up.
Why do so many clueless people buy blindly? You are in a chat board asking people about a company you already spent money on? Do you see what a fool you are? AB is a joke.
they have lost tons of accounts...hired a guru for 52 million who is an art buff, I left, 4 of 6 docs in my group left, I have gone to their conferences...I should record one and send it to u....then the both of us would have gas. Frankly the art buff is a savy art person...what AB needs is a specialist in the art of inveating
I won't comment on the stock but the company is in a shambles. My wife worked there as a stock analyst but left when it was clear that the focus was no longer on fundamental research. More importantly she left because all our money was under AB management and she simply didn't want it managed by them anymore (what does that tell you?). When the new CEO stepped in he had limited experience with asset management and it showed. He's a deal guy and focused on marketing and presentation. Morale is low. Layoffs and pay cutbacks back in 2009 were largely targeted at analysts not portfolio managers. I have heard rumors there is another round of layoffs coming as internal fund performance this quarter has been a disaster. Simply put there is no reason that outstanding stock picking will return to what it once was without the breadth and depth of talent they used to have coupled with a return of the culture of rigorous analysis.
I heard the rumor,too, that AB will let go all dead woods and brain deads.
Naturally the morale is at lowest especially the dead woods and brain deads as they may not be able to find another job warming the chair all day long.
Excellent analysis, it appears that private client assets are fleeing right behind the institutional outflow, the senior advisors have headed for higher ground as well, their strategy appears to be to try and sue these folks out of the business as evidenced by the lawsuit filed against Gelwarg and Mayer, http://www.law360.com/articles/248466/ex-alliancebernstein-execs-stole-client-info-suit,
smacks of desperation