After the earnings call, the deal for Dead Lobster, cancellation of the spinoff and now the news about a large, dilutive share issue I'm starting to feel a bit uneasy about the shareholder friendliness of ARCP Mgmt. This flies in the face of what Nick said during the Conf. call about the low share price being an inhibitor (my words) on issuing addl. shares. How do we trust this CEO's guidance when he turns on his heels so quickly?
What are everyone's thoughts here?
First, the stock won't be sold for less than BV -- which was about $11.70 as of March 31. I am a little surprised that the offering price has not been released; that means a lot of potential buyers will wait and hope to see a lower price.
Second, management is not thinking about you or I. This is about AUM. I don't care what business line we are talking about (MLP, BDC, REIT, CEF, etc.) -- AUM comes first, shareholders second.
With the sale of 100 million shares. I fully expect to see an offering price before I decide to add. I may add, but not with the potential to get some at under $12.50.
Agreed. AUM is very obviously the focus.
Since they've decided to issue shares to pay down debt, anything that rocks share price becomes a hazard to that objective and probably to the dividend. If anything happens to the dividend, this stock will be toast!
I think you're prudent to not buy more without disclosure on the offering price.