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ARCT SOLD TO O for 12.20 a share !!!!!!!! GAME,SET and MATCH

Posted: Thu Sep 06, 2012 6:35 am
by masterxbeam
Just announced today .... Works out to 12.20 a share for ARCT shareholders at current market rates !

Why is this post dried up ? Where is REIT wrecks ? Hmmmm , her comes the last laugh hahahahahahahahahaha!

Re: ARCT SOLD TO O for 12.20 a share !!!!!!!! GAME,SET and M

Posted: Thu Sep 06, 2012 10:05 am
by DHollands51
Now the question is: what multiple of ARCT is ARC III worth?

Re: ARCT SOLD TO O for 12.20 a share !!!!!!!! GAME,SET and M

Posted: Sun Sep 09, 2012 5:43 am
by Trustfew
Game's not over. Integrety of management once again be questioned and I'm honestly at a loss for deciding what to do next. Hoping REITWrecks and other substcribers will chime in and help out. Price target was $12 by most following the stock. Then raised to $13. Yield fell from 7 to just below 6 as the stock appreciated. While exit was fantastic, i.e. the listing and appreciation since then, the 30 day average price deal for management's compensation during the month of September has me smelling a big RAT. These guys play hero and "good guys" in a bad industry and as far as I'm concerned, then pull this fast one. There was absolutely NO benefit to shareholders in selling out at $12.20 a share and as such the ambulance chasers on Wall Street are already all over this. Any shareholder could have sold on their own, we didn't need this.

The yield goes from 5.8% to 4.2% (approximately), the quality of the portfolio is far from comparable and even as Nick and pals demonstrated, in print prior to the listing, ARCT should trade in the range of $13.50 when compared to, you guessed it, Realty Income "O". Stock now has little potential for price appreciation. So, owners see a reduction of in yield of nearly 25% and miss the opportunity to have acheived another 6 to 10% appreciation in the stock price. Why? Apparently so that management/sponsors of the non-traded REIT could lock in a substantial price increase over the $9.78 per share number per the deal with listing with securities regulators in OH (as I recall).

So, the question is, what to do now as a result of the pending sale and pending lawsuits. I'd like some thoughts as to when and how much to sell. Seems price will stay over $12.20, assumming that O and the sector stays strong. If the lawsuit is successful, seems O will be able to afford/absorb quite easily. However, if I exit now, will I loose the potential award to shareholders presumming the law firms are successful, or do I need to hold in order to receive a potential benefit?

Finally, back to the point about management. Why sell? Well, if it weren't a bunch of original kitchen table private reit investor owners vs institutions, lets face it would never get institutional shareholder approval. So, we all know its a done deal (as well as Nick and co knew it would fly). They get their big gain and current shareholders get screwed. Not as badly as nice gain for original investors but this is now a publically traded and what had become a respected company, not a private REIT. Of course, we all know its all about the sales engine of RC Securities. ARCT IV is in its money raise, ARCT III closes in a few days and now all the smart Financial Advisors will push ARCT IV with proceeds (and track record) of ARC, even though valuations, i.e. cap rates are not what they were in 08 through '11.

I think all should remember something. The sponsors make a killing and are out scott-free, their reputation, unlike a "FA's" doesn't matter, they've all become mulit-millionaires. They now have a way to keep the ARC machine rolling (ie funding of ARC IV) and will ride ARCT III on the coatails of ARCT II. I'd be very much afraid of ARCT IV given the market change since ARCT II, i.e. cap rates, risk of recession #2 and new 18 month mark to market valuation requirements.

Thoughts?

Re: ARCT SOLD TO O for 12.20 a share !!!!!!!! GAME,SET and M

Posted: Mon Sep 17, 2012 7:46 pm
by masterxbeam
My thoughts are that "investors" like "trust few" give credence to the phrase : damned if you do and damned if you dont !!!! Just remember , Nick and company always said since day one tht managements goal was to provide a clean, fast liquidity event for investors with a stable current yield .... Which is exactly what they did .... And if your broker sold it to you an other way (which it sounds like he did)then do your own research ! Be happy , you could have been with Beringer Harvard or David Lerner ..... Or Wells .... who will drag you out for years to rape you in internalization fees !!!!