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johnnyvolvo

johnnyvolvo
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  • American Realty Capital Properties IPO Gets A C- [View article]
    Thanks Brad, I was waiting for this article as a hoped for confirmation of my gut feelings about ARCP. The current management seems to have burned investors in the past, as evidenced by archived posts from some upset investors on other online forums.

    I swallowed hard and bought ARCP last year primarily based on your research of them. I cannot complain, as I am up nearly 30% on them in spite of the recent pullback from it's highs (thank you!), but I believe I'll take my ball (capital) and go play another game now.

    These high management fees, coupled with overpaying for assets, less than hoped for diversity and the fact that this is a bit of an incestuous deal have me feeling a bit cautious here, to say the least.
    Add into the fact that the REIT market has heated up the last 6 -12 months like a cheap hotplate with a broken off button, and I say it's a good time to step back and distance yourself from any deal that even smells a bit questionable.

    This is not looking like a SWAN (sleep well at night) investment, as you like to say. ARCP is feeling to me more like a KAAN (keep awake all night) investment now. Time to kick this KAAN down the road, and wait for a pullback on a solid SWAN investment, yes?
    Jan 28, 2013. 04:48 PM | Likes Like |Link to Comment
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