We will analyze the long-term fundamentals of American Realty Capital Properties (ARCP) to demonstrate that it is a strong company worthy of long-term investment. It became unusually cheap this past week due to a one time liquidity event. The present opportunistic pricing is an ideal entrance point for both traders and long-term investors. To begin, let us detail the events which have created the anomalous market pricing.
On February 28th, ARCP closed on the acquisition of ARCT III. This merger was followed by a large drop in market price from $14.54 at the close of the 26th to its present $12.50 (intra-day on 3/4/13). To demonstrate the opportunity, we will present two bits of information: that the merger...