It is very likely that you will make 15 to 20% during the next 12 months. It the new CEO finds the solution to Cole, you will make 30%.
This is the QUIET period prior to earnings release. Plus, it's the perfect opportunity to accumulate the cash in the company. ARCP may not get another opportunity until the next accounting fiasco.
Given that the Cole business is not expected to generate much income. My guess is that ARCP's will generate approx. 0.80 cents in cash annually, and if the new board is generous, it will approve an 18c quarterly dividend. . It will take ARCP a couple of years to recover from its accounting scandal.. Looking at smaller triple net REITs, my guess would be that ARCP will trade between $9.25 and $10.50 during the next 12 months.
I will give you my short view of the paragraph and you are welcome to draw your own conclusions. In short" ARCP did acquisitions and there was no cash left to pay dividends" . Subsequently, the old management departed leaving no cash for dividends or acquisitions. So ARCP will re start the business all over with a new CEO and a new dividend.
David Tepper is not always right. He did not read the news release properly. One day, it will come out about how ARCP got #$%$*. by the hedge fund on the Red Lobster deal.
Reading between the lines, it seems that ARCP does not have the funds to pay dividends. According to the new release yesterday, " In calculating AFFO, we exclude expenses, which under GAAP are characterized as operating expenses in determining operating income. These expenses are paid in cash by us and therefore such funds are not available to distribute to investors." Unless the new CEO comes out and start selling the assets, it appears that ARCP is needs to do another stock issuance. That's probably the reason it wanted to sell Cole and the deal did not go through. I would not be surprised to find out that management #$%$**** up the Red Lobster deal and did not issue enough shares to do the deal. Here's an opportunity for short sellers.
At least, they spit out that there would a quarterly div when restate. I thought they 1.6b for red lobster, it says that they paid 1.7b. 0.1b must have been for a bonus to useless directors for approving the deal and #$%$* the common shareholders. They repaid the debt by issuing more shares.. They sound like assh** to me.
It's my view that the CEO made a one sided statement. It's okay to have the dividend in line with its peers, but what about getting the market value of ARCP stock in line with its peers. Both should go hand in hand. He is not making any friends with common shareholders. If he is trying to tell us that the problem is bigger than 4 cents then I hope he spits it out on Monday..
Sentiment: Strong Buy
I do not have inside information, but I can just guess the CFO and the acting CEO informing the shareholders and analysts that the accounting issues are behind and the accounting software has been upgraded. Furthermore, all offices of previous mangers have been cleaned after the food fight. The dividends were used for hiring limousines to take managers home after the food fight, cleaning offices, etc. . .
Sentiment: Strong Buy