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Strategies & Market Trends : Value Investing
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To: E_K_S who wrote (55657)7/10/2015 6:54:03 PM
From: E_K_S  Read Replies (3) of 78717
 
Re: American Realty Capital Properties, Inc. (ARCP)

Dividend has/was suspended in this REIT pending the election of 2 board members and the filing of their 2014/2015 10K reflecting the consolidation and spin off of some core assets.

This REIT is a mess w/ prior management now stepping down and a 7.5% activist investor (they acquired their shares at a slightly higher price) now demanding and getting board representation. The new shareholder's meeting was announced today (September) and that s/d detail and finalize new management and the core assets that will drive the future dividend payments.

The value proposition is there but still a bit of uncertainty baked into the low price. The company will be required to make some end of the year distribution to maintain their REIT status. Estimates are at the low end maybe $0.80/share but the 2015 dividend could be impacted by one time fees/expenses (mainly from all the lawyers).

I am betting that the stock will eventually be much higher once the market can determine the FCF from their core assets (which are quite good). It still may be a bit early to buy shares but daily volume has/is expanding and now we have a firm date that will detail the new changes. Old management is out which took more than 6 months to achieve.

My position is still small but I am buying 25% lower than my last sale and core assets are still in place.

Buyer beware on this one but for me the Risk/Reward looks promising at current levels.

EKS
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