ARI is a screaming BUY here when you consider the 9.9% dividend and that we are trading well below book. Guess the U/Ws got stuck with many unsold shares and had to dump. Their loss is my gain.
However, now that I'm in again I want to start a shareholder campaign to stop raising new equity capital....ESPECIALLY BELOW BOOK!! I don't see any gain to existing shareholders unless the new money can be invested at higher rates with less risk. I doubt that is the case with this week's secondary. The only clear beneficiary I see is those who earn management fees. What do shareholder's gain? Anyone with an answer please step forward. My view is they should simply invest any principal repayments from the existing portfolio and credit lines. If you agree, join me in a campaign to contact Apollo http://ir.apolloreit.com/phoenix.zhtml?c=202674&p=irol-inforeq and ask them to put SHAREHOLDER"S INTEREST FIRST!! If the conditions are right to raise equity capital in the future (FOR the benefit of shareholders) it should be done as a rights offering so the benefit goes to existing shareholders NOT Wall Street underwriters and Apollo management.
Please join me in my crusade to put shareholder's first and foremost in the decision making process at Apollo Commercial Real Estate Investment Trust.