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+--- Thread: DRI, Red Lobster and ARCK (/showthread.php?tid=559)
RE: DRI, Red Lobster and ARCK - Joey Batz - 10-04-2014
I'm going to initiate a position in it too. It seems like it's trading at a great price, and with a huge increase in revenue (according to Yahoo Finance), it seems like the company's negative EPS and high debt are just this new company trying to break a speed record acquiring a property portfolio that would make Realty Income blush. It all stands on whether that increased revenue will be enough to sustain future earnings growth, pay down the debt, and keep the dividend from disappearing. With property in 49 states as I understand, I should hope that they do just fine.
The big red flag against all that is their portfolio's high reliance on Red Lobster. I have a feeling they were after the properties rather than the restaurant, so all eyes on either Red Lobster to perform well, or ARCP to have a game plan to quickly and cheaply fill those properties in case Red Lobster bottoms out.
The position I initiate will be a small one. It seems like a slightly risky play, but a measured and reasonable one. It's not like it's a biotech penny stock.
RE: DRI, Red Lobster and ARCK - earthtodan - 10-29-2014
ARCP -20% on accounting issues, CFO is fired. I guess this is why you diversify.
RE: DRI, Red Lobster and ARCK - rapidacid - 10-29-2014
http://ir.americanrealtycapitalproperties.com/file.aspx?IID=4280143&FID=25831896
Quote:American Realty Capital Properties, Inc. ("ARCP") (NASDAQ: ARCP) announced today the conclusion of its Audit Committee that the previously issued financial statements and other financial information contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and Quarterly Reports on Form 10-Q for the fiscal periods ended March 31, 2014 and June 30, 2014, and the Company's earnings releases and other financial communications for these periods, should no longer be relied upon.
Oops.
RE: DRI, Red Lobster and ARCK - DRILLINDK - 10-29-2014
This being one of my larger positions really hurts. I'm anxious to see how this all plays out and I'm hopeful it's for the better...
RE: DRI, Red Lobster and ARCK - DividendDragon - 10-29-2014
That's just crazy.
I'm either feeling incredibly daring or stupid at considering buying a few $100's worth 0.0.
RE: DRI, Red Lobster and ARCK - Roadmap2Retire - 10-29-2014
(10-29-2014, 09:52 AM)Lewys120 Wrote: That's just crazy.
I'm either feeling incredibly daring or stupid at considering buying a few $100's worth 0.0.
I just had a quick look at some of the fundamentals and the correction has made it fall below its book value...tempting. But I havent done any other background research and dont know the company well enough to invest in it. So, I'll stay away.
I do know that its been a popular stock amongst a lot of DGIs.
RE: DRI, Red Lobster and ARCK - WRXodus - 10-29-2014
..and to think I was tempted to add to my position back a week ago at $11.80. Now I'm just glad that I held it in my taxable account so I can claim the loss >:/
RE: DRI, Red Lobster and ARCK - earthtodan - 10-29-2014
I'm holding, not taking a 30% loss on principal in my Roth IRA. The underlying assets and revenue stream from CVS, WAG, FDX, etc. haven't changed. The dividend payout will probably take a hit but at least I'll collect part of what used to be 8%. Meanwhile I'll keep putting those payments into other stocks, as before. Technically speaking, I have 32 years left on my investment timeframe before I can remove my principal anyway.
RE: DRI, Red Lobster and ARCK - EricL - 10-29-2014
I'm in the same boat. I hold it in an IRA and have been pooling dividends from all of my stocks for future purchases. Will probably just hold and continue to collect the dividend.
I expect it will probably be cut, but even if its halved its still more income than the capital will generate if I sell it and put the money elsewhere.
RE: DRI, Red Lobster and ARCK - Kerim - 10-29-2014
(10-29-2014, 08:54 AM)earthtodan Wrote: ARCP -20% on accounting issues, CFO is fired. I guess this is why you diversify.
Exactly. I was away from computer all day so not able to follow the news on this, but certainly not a good event. Imagine I'll hold too, but looking forward to reading up on this tomorrow.
RE: DRI, Red Lobster and ARCK - DividendDragon - 10-29-2014
If the debt was lower I would have pulled the trigger for a risky but potentially high reward buy.
RE: DRI, Red Lobster and ARCK - ronn38 - 10-29-2014
I'm holding as well, little over a 30% hit from my original purchase price--OUCH!
However, my appreciation in Microsoft alone has more than covered this lose. So one to one (i.e. dollar for dollar) its a wash for me. And, my overall portfolio actually in creased by almost 1% just today.
Diversification...the power to makes ones response even to this nasty news a "huh, that happened...?"
Ronn