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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (55264)	4/28/2015 1:00:29 PM
From: E_K_S	Read Replies (1) \| Respond to of 78746

Re: American Realty Capital Properties, Inc. (ARCP) Started a small position in the ROTH at $9.08/share. This complements my previous Buy in the IRA at $9.25/share. I like to hold these REITs in the tax preference accounts. I do hope that the large pension companies who own very large positions in the common will make management (and new CEO) more responsible in the way they charge their fees. There are/were complaints that inside deals between related parties have been charging huge fees in buying and selling properties to the detriment of the shareholders. The fees have been rumored to be in excess of $500mln. American Realty Capital: In Case You Forgot About The Lingering Risks According to Bloomberg, an updated court filing from these institutional investors outlined a series of abuses. For example, ARCP was charged $510 million in deal-related commissions and fees, $63 million for advice, and assorted sums for public relations work, 'services relating to office supplies' and furniture, much of which had no record of being received... The idea being that ARCP and its shareholders were patsies being bilked for fees. If such evidence sticks, ARCP will likely have notable costs ahead. And even if ARCP avoids any financial damages, it has notable legal costs ahead to defend itself. ------------------------------------------------------------- I hope I am not buying into a law suit but the do own a lot of valuable assets that generate pretty good FCF. EKS