The December dividend tally is finally in, apologies for the delay, the server that this site is hosted on was taken down, hopefully we are back to normal service.
Anyway, the dividends for the month came in at $623.90. This is almost a 2x increase over December 2013 and brings my total for 2014 to $9359.25. This over 2x what i made last year.
For 2015, the percentage gains will be less impressive but that is besides the point, i just need to keep boosting the income by approximately $4000 a year – with that in mind, i am looking at 2015 target of around $13,000. I will be contributing significantly to my taxable account this year as i have maxed out all the room in my tax-free accounts.
A few flies in the ointment have appeared to make the 2015 target a little harder to achieve, ARCP being one of them but i’ll expand on that shortly.
I’ll cover energy and commodities in the next post but i firmly believe we are going to get some insanely good deals in the next 3 to 6 months and as a result, i’m going to be keeping more powder dry and be ready to take advantage of valuations that are in some cases closing in to 10+ year lows…
Back to ARCP, i held a reasonably large position of this stock so when the news came out about the accounting issues, the drop hurt a bit but i was ok as the dividend was still intact.
When the news came out about the top 3 execs leaving, i exited about 2/3 of the position HOWEVER, 1 day later i realized this may of been a mistake. Why? The price action, with news of all your top people leaving, the stock simply didn’t tank, it just sat there. I put some of it down to light volume over the holidays but as you can see recently, the price action is looking very bullish especially as a fund had recently announced it had taken a 7% stake in the stock. It looks possible that it maybe ready to rip back to $12.50 or so….we’ll have to see, January has a few catalysts for ARCP so we’ll know pretty soon i think. In light of the possible price movement, i loaded up on long term calls which are doing great and have recovered a chunk of the losses i took when i exited some of the stock. I may well add back into the stock once the dividend is reinstated, TBD…
$7.50-$8 looks like where the buyers stepped in ( or shorts covered ) . The initial down move was slowly being accumulated ( read as some buyers stepping in or sellers dried up). The second gap from around $9 back to retest $7.5 was the announcement of the execs stepping down. The stock should of stayed down or proceeded lower but it didn’t happen. Support was partially confirmed by articles such as this, Corvex discloses a 7% stake in American Realty Capital.
$9.50-$10 is major resistance, if $10.20 or so is taken out on big volume then the gap to $12.50 is likely to be filled, the risk/reward here is acceptable for me with options. The stock could possibly churn for months in the $8-$10 range but i think once the dividend is reinstated and with Schorsch out of the picture ( he didn’t appear to be helping) – the stock has a decent shot at normalizing.
I hope your 2015 has kicked off well and you have lots of exciting plans and ideas. There is so much opportunity out there, take advantage.