Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hey, gustav, thanks for breathing a little life into this dead board.

I don't know what to think about the rights offer. It gives shareholders a chance to buy at maybe a 5% discount to market, of course depending on the ending exercise price.

This kind of thing is brand new to me. I may call the company and ask for some hand holding to help decide how to buy more shares.

The rights showed up in my Scottrade account today. They have a current nominal value of 0.56/share, and I think if they're not exercised they'll just disappear again from the account.

As for ARCC itself, it looks very cheap on a revenue basis, as well as earnings, price/book, steady and increasing dividend.

On the other hand, being a small company in this credit-constrained environment is a dangerous place to be.

I have a modest position in ARCC that's under water, but I think it's strong enough to pull through, at least for now. Not sure I want to add more shares right now.

I have more questions than answers on this one, and I'd be glad to discuss and hear opinions.

Regards,
kc
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.