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.


  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.

  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!

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

  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:

    *) 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

  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.

  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.

  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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