Thursday, August 25, 2011

Stadium Capital increases its ownership of ARC shares; SC is now a "10% owner" of ARC shares

In a “Form 3” filing on August 24th, 2011, Stadium Capital Partners, LP, one of ARC’s largest shareholders, indicated its current stock ownership position in ARC (4,646,321 shares). Stadium Capital Partners is, evidently, located in New Canaan, CT.

In a separate “Form 4” filing on August 24th, 2011, Stadium Capital Partners, LP indicated that it had just recently purchased 30,600 shares of ARC stock (purchased at $3.79 per share), and, on that Form 4 filing, Stadium Capital Partners “checked” the box indicating that it is a 10% owner of ARC stock (meaning, 10% or more of ARC’s outstanding shares.)

Stadium Capital Partners is, evidently, affiliated with Stadium Capital Management. I’ve previously put up blog-posts about SCM and its significant ownership position in ARC.

Based on the plunge in ARC’s stock price, from a high this year of $10.50 to its current price at $3.90, the market value of SCM’s (SCP’s) ARC shares has certainly taken a big hit; the percentage decline being nearly 73% (based on ARC’s closing price, yesterday.) However, having said that, I have no idea when SCM (SCP) began accumulating its position in ARC, and I don’t know how much SCM (SCP) paid for its ARC shares (except for the recent purchase reflected in the Form 4 filing.) It could very well be that SCM (SCP) acquired most of its stake in ARC back when ARC’s shares were trading under $3.00 per share.

In any event, the recent additional purchase of ARC shares shows (this, of course, is simply my opinion) that SCM (SCP) is even more serious about its stake in ARC, for it is now a “10% owner.” Rather than cutting back on its position, SCM (SCP) has increased its position. This, to me, shows a significant investor’s confidence that ARC shares will, at some point, evidence a strong rebound. After all, they aren’t buying ARC shares to use as wallpaper.

You can access the Form 3 and 4 filings by going to the Investor page at

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