I don't like the new rights offering. It seems to put me in the position of tossing good money after bad. I'm reducing my position a bit here.Anyone else concerned?
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
I decided to sell my rights. My big concern right now is the falling stock price. Weak earnings were announced this week and the earnings will barely cover the amount of the previous dividend. The continuation of the dividend is also a huge concern. If I buy again I want to buy when the price is rising or more stable, not now.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |