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Rubicon Associates

 
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  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    Speaking for myself, absolutely no insult taken. Had I not written it myself (I don't normally use caps and give my teenage daughter flack for just such offenses), I would absolutely agree with the teenage girl comment.
    Nov 6, 2014. 03:19 PM | 1 Like Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    You will note AIG reps are no longer selling their products. Not affiliated. And I left out the emoticons. ;-)
    Nov 6, 2014. 01:49 PM | 1 Like Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    Rats, I told Brad. And no, you are banned from DGI. Sorry, there had to be consequences.
    Nov 6, 2014. 01:46 PM | Likes Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    Gratian, I agree that Nick will probably be gone. However, recusing yourself in a meeting (and therefore the minutes) does not mean back channels and other indirect means weren't present.
    Nov 6, 2014. 01:42 PM | 2 Likes Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    I apologize for not seeing another article in these pages focused on the Chairman, but do not apologize for this "pointless" article. For reasons mentioned earlier, I thought it might call out what may be obvious but is rarely stated (think the sell side will say it and risk IB business?).
    Nov 6, 2014. 01:39 PM | 1 Like Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    Without Nick, there would be no ARCP. With Nick, it can't go forward. If for no other reason than to show the company will be beyond reproach.
    Nov 6, 2014. 01:31 PM | 1 Like Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    Given the number of shareholders, I will venture to guess that one or two have not yet opined.
    Nov 6, 2014. 01:29 PM | 2 Likes Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    I hope not. My intention wasn't to merely write another article about an accounting misstatement, but rather to focus on a significant issue I believe will need to be addressed for this company to move forward. If you believe this was a waste of your time, I don't know what to say other than you compounded that waste by taking the time to comment.

    Further, if SA can be used as a bully pulpit (yes, these REITs do read the articles - trust me, I have heard from them) to make a valid point, then I will use it as such.
    Nov 6, 2014. 01:28 PM | 2 Likes Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    Absolutely. That is a terrific point. I consider myself a value investor, which entails certain risks. O will provide that stability of income and growth that many are looking for. I am looking for both income and appreciation and believe this is the better choice for that type of mandate.
    Nov 6, 2014. 01:21 PM | Likes Like |Link to Comment
  • American Realty Capital - Enough Already, Thoughts From A Shareholder [View article]
    I still have conviction for the trade. What separates the two companies? Similar tenant buckets (yes, except Red Lobster), similar tenant ratings... The difference is the significant discount applied to ARCP due to its growth and ancillary businesses (Cole). Do O properties really have that much of a greater growth potential? Many will say it is the management of the assets, and that may be true, but I am willing to wager (and indeed am wagering) that you will see a new level of focus emanating from this event.
    Nov 6, 2014. 01:19 PM | 2 Likes Like |Link to Comment
  • Accounting Irregularities Knock Down ARCP: Buying Opportunity Or Enron Part 2? [View article]
    The event of default lists the following (from the prospectus): (1) default for 30 days in the payment of any installment of interest on any series of the notes; (2) default in the payment of the principal of (or premium, if any, on) any series of the notes when due, whether at stated
    maturity or by declaration of acceleration, notice of redemption, notice of option to elect repayment or otherwise; (3) default in the performance of any of the Issuer’s or any Guarantor’s other covenants contained in the Indenture or in such series of the notes, (4) the guarantee of any Guarantor ceases to be in full force and effect, (5) default under any bond, debenture, note or other evidence of indebtedness for money borrowed by Parent or any of its Subsidiaries, and (6) certain events of bankruptcy, insolvency or reorganization with respect to Parent, the Issuer or any Significant Subsidiary of Parent. The referenced covenants are fairly standard REIT covenants, so no breach. The possibility of a reorganization due to this is so small, it does not warrant consideration. Importantly, they jammed non-GAAP numbers. Palatable? No. Survivable? Yes. I look at it as management trying to hit AFFO targets (compensation hurdle???) and the CFO stretching to do it. Bad play. Normally, a company brings in someone squeaky clean to clean up the mess. Should this stop at the CFO level? The buck stops with the CEO and honestly, he should probably go. This was not merely an error - I can accept an error. This was finding an error (hmmmmmm) and not correcting it. The assets are good, the business is good - the CEO must go as well. Compare to Enron? Absolutely not! Look at the old Tyco experience instead. Ultimately worked out well. Prospectus (http://1.usa.gov/1xHUVvf)
    Oct 31, 2014. 08:14 AM | 1 Like Like |Link to Comment
  • Cliffs Natural Resources: Bonds Support Stock Move [View article]
    Absolutely agree with your sentiments. As I stated, keeping the dividend is a mistake, buybacks are a mistake and Casablanca's plan is short-sighted at best.
    Oct 30, 2014. 10:49 PM | 1 Like Like |Link to Comment
  • American Realty Capital: Setting The Record Straight [View article]
    Morgan, Great article and explanation of the valuation. I do like the FFO yield approach and will use it going forward as well as P/FFO. I obviously agree that ARCP trades at a steep discount to peers and believe the valuation gap will close once the REIT takes a step back from the big game hunting.
    Aug 26, 2014. 12:58 PM | 1 Like Like |Link to Comment
  • Should You Buy American Realty Capital Properties Instead Of Realty Income? [View article]
    The only thing you have said that I take exception to is the pageviews comment. This is not what I do for a living and, honestly, I am not in it for the money. The amount I get paid would be worth chasing pageviews.
    Aug 20, 2014. 12:03 PM | 1 Like Like |Link to Comment
  • Should You Buy American Realty Capital Properties Instead Of Realty Income? [View article]
    They are setting financial policy (dividends...) based on run rate cash flow. In other words, their cash flow will "catch up" to their financial policy and create a sustainable payout.
    Aug 20, 2014. 11:59 AM | 1 Like Like |Link to Comment
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