Tuesday, December 30, 2014

Trade - Sell

I sold out my position of America Realty Capital Properties Inc. (ARCP)

231 shares @ $8.05 on 12/24/2014

I was actually going to hold on to this company even if they cut the divided by half, but I was not planning to add to it in the future. The reason why I sold is because they decided to suspend the dividend payments for the near future. That was the last strew for me.


Invested $3,020.26
Total Divided Received: $224.49
Amount after sell: $1,852.50

Not sure how I get my ROI. Maybe one of my readers can help me with that. :)

I think I got a ROI: -33.7%

I put this money right back to work. I will mention the two buys this month  in my next post as well as my 2014 in review and 2015 Goals post.

Lesson learn here. Buy quality with history/track record.


9 comments:

  1. Argh! I've (reservedly) decided to hold my position on ARCP. Hopefully this pans out. I'm looking forward to seeing what you moved your funds into.

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  2. Hey, Great blog I'm enjoying your progression. It seems I'm in the same boat you were in a few years ago. I'm 25 have a lot of debt I'm getting rid of, just got an entry level job with my CS degree and just now starting to invest in the stock market.

    I sold ARCP at $9.20 I think I lost about 18%. Put the money into AT&T (seems undervalued to me right now?)

    Thanks and look forward to reading more!

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  3. I did actually buy some more of this one.
    So fingers crossed hoping for the best!
    cheers!

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  4. Hey,
    this definitely turned into a more speculative position over the past half year. I'm still holding and bought some more shares at the beginning of November for around $8.17. The dividend suspension does suck as I was hoping for reinvestment at low prices, but they are supposed to reinstate it at some point in 2015. I've projected it as: no dividend for Jan,Feb and then in March they reinstate it with a 20% decrease from where it was. Perhaps this is overly optimistic.

    Still, they are a REIT so they eventually will start paying out again and I think some activist investor group recently jumped on them - which might be welcome since most management is gone. Still, the underlying assets are still there, and disregarding new acquisitions, I don't think this company is that difficult to run.

    In any case, I am not adding to this either. My last two additions were to DIS and DPS, so also going for more quality, even if it comes at a price. Going forward I will be announcing buys and sells on the day I do them on my blog too. I'm curious as to where you will be putting this capital to work next.
    Good luck!


    In regards to calculating ROI, I think it is like this:
    I think roi formula is:
    (current/original)-1

    *) example 1:
    original 100
    current 110

    110/100 = 1.1
    1.1-1 =0.1
    10 % gain

    *) example 2:
    original 100
    current 90

    90/100 = 0.9
    0.9 - 1 = -0.1
    10% loss


    --- your stock:
    In regards to ROI, it depends a bit if that dividend was reinvested or not.
    original $3,020.26
    div $224.49
    current $1,852.50

    *) div reinvested in same stock:
    $1,852.50/3,020.26 = 0.61336
    0.61336 - 1 = -0.38664
    38.6% loss

    *) div not reinvested:
    ($1,852.50 + $224.49)/$3,020.26 = 0.68769
    0.68769 - 1 = -0.31231
    31.2% loss

    ReplyDelete
  5. You and many others have been selling out of ARCP the last several weeks. I guess it's like dominoes. Once one blogger sells others tend to follow suit. I know after the news of ARCP broke with the accounting scandal many opted to simply hold on to the shares and some even bought more. I can understand why you dumped the shares though. I'm happy I never got involved in those REITs. I have been interested in some health REITs though like HCP, VTR and OHI. Thanks for sharing.

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  6. I would just move on. This amount of loss is chump change in the long run of things. ARCP was not a high quality company.

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  7. Bummer about ARCP. I had a sizable position in this company. Although I must say, I was never comfortable with ARCP. I should have listened to the voice in my head telling me to sell.

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  8. This comment has been removed by the author.

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  9. I love Trading, Daily I get very good intraday stock market advise by Epic Research financial Advisory.

    ReplyDelete