Duckwall-ALCO ROE displeases investor

ABILENE, Kan. Duckwall-ALCO investor Strongbow Capital said in an SEC filing today that it had sent a letter on Nov. 20 to Duckwall-ALCO’s chairman and other members of its board of directors regarding the company’s slow turnaround progress and not yet reaching its return on equity goal set forth nearly three years ago.

Strongbow reported in the filing that in the letter sent to Duckwall-ALCO, it indicated that it intends to nominate and select a slate of directors at Duckwall-ALCO’s 2008 annual meeting, unless it is satisfied that progress has been made in achieving solid return on equity for the 12-month period by the end of the third quarter of the current fiscal year.

Duckwall-ALCO generated ROE of 3.88% for the 12-month period ending with the second quarter of this fiscal year. For the 12-month period ended with the third quarter of this fiscal year, the company generated a ROE of 3%.