Monday, January 26, 2015

Stock Sale: ARCP


Today I decided to stop dragging my feet and just bit the bullet.


  • Stock sold:  ARCP  195.27 shares @ $9.43 --- Yield:  0%

This transaction will net me $1840.48. Luckily I had a free trade with Sharebuilder so at least that reduces the pain a bit. Since ARCP was paying $1.00/share in dividends, technically my yearly dividends are decreasing by $195.27. The reality is they have already decreased prior to this sale

My cost basis was $12.47 so I have a capital loss of $594.54. Total dividends received from ARCP during 2014 were $94.41.

The two remain REITs within my portfolio are HCP and DLR which I purchased during the summer and fall of 2013. These two companies, unlike ARCP, have performed exceptionally well. In fact I am close to having a double in DLR. I have no plans to eliminate these positions.

I will allocate the proceeds to my weekly Sharebuilder purchases during the next several weeks.


19 comments:

  1. Not surprised by this sale, as I made the same one at the end of December. Just needed to bite the bullet and realize a mistake was made. Looking forward to seeing where you reallocated these funds.

    ReplyDelete
    Replies
    1. W2R,

      I plan on putting the funds into companies that have a fantastic chance of paying dividends for this year and many years to come.

      MDP

      Delete
  2. MDP,

    Don't fault you in the least with that move.

    I'm still holding onto ARCP though I'll be shocked if I'm still holding it by year's end. I came close to dumping in December but didn't need the tax loss so I held. Since they've made all the right moves imho so I'm hanging by a thread to see how it plays out.

    Best,
    DWC

    ReplyDelete
    Replies
    1. DWC,

      I held the share through December for the same tax reason. Hopefully the shares continue to rebound for you. I didn't want to sell when the shit hit fan as I figured there would be a rebound. I'm still down quite a bit, but fortunately my positions was small.

      MDP

      Delete
  3. Good to cut loose the problematic ones like ARCP and move on, MDP. Theres not much you can do when the management lies to you and starts cooking books.

    R2R

    ReplyDelete
    Replies
    1. Roadmap,

      While I don't think we are in Enron territory, it doesn't look good for ARCP. Quite frankly I was sick of seeing it within my portfolio. That's not really a logical reason to sell, but it was a reason nonetheless.

      MDP

      Delete
  4. I'm keeping mine. Whenever I'm feeling adventurous and in need of excitement in my investments I'll just look at my ARCP position and go back to boring.

    ReplyDelete
    Replies
    1. Anonymous,

      Believe it or not I think that is a great reason to keep it. Having a reminder of a bad decision most certainly can help you think things through before making yet another bad decision.

      The best lessons are typically learned from our failures rather than our successes.

      MDP

      Delete
  5. I was wondering when you'd sell ARCP. At current situation there's really no reason to hold ARCP. Good for you for cutting the cord.

    ReplyDelete
    Replies
    1. Tawcan,

      Thanks. I hope for those who continue to hold shares that the company rebounds. I'm just glad to clean up the portfolio a bit.

      MDP

      Delete
  6. It's always a risk and we all make the decisions we think are the best. But I'm wondering what are the exact reasons why you got rid of it? I don't hold this company...

    ReplyDelete
    Replies
    1. DivGuy,

      Actually there are a few reasons. One the dividend is gone (for now at least), I waited until this month because I didn't need the loss for last year, and finally I just feel like cleaning up the portfolio a bit.

      The company may very well transform itself back to respectability, but I will probably stay away from these type of specualative plays in the future....or at least try to.

      MDP

      Delete
    2. A cut to 0 is never good that's for sure. I would have sold too, especially if you have no trust in the company anymore. Thank you for these details!

      Delete
  7. Wow I cant believe they cut to 0! Is this a temp thing while new management switches over?

    ReplyDelete
    Replies
    1. AG,

      It's supposed to be a temporary thing, while they reissue their income statements. Supposedly they are going to restart dividend payments later with a yield that is aligned with their peers.

      Whatever the case I am glad that I am out. It was a speculative play on my part and it didn't work out. It won't be the first or last time this sort of thing happens.

      MDP

      Delete
  8. MDP -

    Nice sale actually, looks like you grabbed another 20 cents higher than Bert's sale. Not the only one who dumped them. On to bigger and better things that will produce bigger and better dividends. KEEP GOING. (With the LETS GO music playing in the background)

    -Lanny

    ReplyDelete
    Replies
    1. Lanny,

      Yeah, I will try to stay a bit more "traditional" with my future purchase. We'll see how that works out. :-)

      MDP

      Delete
  9. MDP,

    Seems like a prudent move to me. I sold out a while ago as well. Just one of those things. Nobody bats a thousand, but it's good that you're honest with yourself in the fact that you're not comfortable with a spec play. Bigger fish to fry. :)

    Looking forward to seeing where you go with the capital next!

    Best regards.

    ReplyDelete
    Replies
    1. MDP,

      Looking at CAT, I may make a bigger purchase today in addition to my sharebuilder purchases.

      MDP

      Delete