I circled the day's trading range. I wonder who was part of the trade at $5.54, especially the sell side. Someone took a nearly 50% loss when ARCT has a tender offer to purchase shares at $10.50 per share. You can't fix stupid.
Thursday, March 01, 2012
More ARCT Listing
Here is a partial screen shot from yahoo.finance of the closing of ARCT's opening day of trading:
I circled the day's trading range. I wonder who was part of the trade at $5.54, especially the sell side. Someone took a nearly 50% loss when ARCT has a tender offer to purchase shares at $10.50 per share. You can't fix stupid.
I circled the day's trading range. I wonder who was part of the trade at $5.54, especially the sell side. Someone took a nearly 50% loss when ARCT has a tender offer to purchase shares at $10.50 per share. You can't fix stupid.
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2 comments:
It appears the tender offer is having the desired effect of limiting the downside selling pressure. What do you suppose happens when they announce that there were excessive tenders and they will only cash investors out at $10.50 on a pro-rata basis?
I would seriously be surprised if the tender is over-subscribed. It is my opinion that the large majority of investors in ARCT do not "need" immediate liquidity compared to investors in "legacy REIT's". The tender in my opinion was a genius idea if only to stabilize the Listing Price, because in this current environment, in this stock market, and specifically in the real estate and REIT sector, Investor Confidence is the only thing that really matters(figuratively). And if the stock price continues to trade in a stable range it will appear more attractive from a volatility standpoint. I think the team at ARCT has done an incredible job with REIT I and paved a way for new offerings coming to market and how they structure them for investors. My advisory firm incorporates ARCT offerings within suitable portfolios.
Just my 2 cents..Great Blog BTW.
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