It has been a volatile month in October. With a big pullback
and a snap back rally that caught many investors by surprise. As many have
noticed the ARCP accounting scandal that ended the month was not welcoming.
Many investors lost all confidence in the company and sold. I cannot blame them after what management has
already put them through. However, I am
not the same type investor as everyone else focused on a longer term as I still
believe the assets and rent are there to make this company worth owning a
position. Call me a contrarian or crazy, but if there are not any more major
skeletons being uncovered in a few years I will be happy I did not sell at a
loss. Another benefit to this ordeal is I am not underwater that much because I
got some shares for a better price with the takeover ARCP did with COLE. I will
be able to continue to collect the dividends and counting on them not to cut it
if they can avoid it. Even with a cut the yield would be quite high and the properties
and rental income should be able to cover the payments. Over time this should
be able to dissolve assuming no major news comes out. It is a calculated risk
worth taking and since you should be well diversified to start with, it is a
lesson to some. In other news Enerplus (ERF) recently terminated the stock
dividend program that was beneficial for shares and tax payments.
