Stadium Capital continues building its position in American Reprographics Co (ARC) shares (information updated for purchases through 11/1/2011)

I’ve done several previous posts on Reprographics 101 about Stadium Capital continuing to build its position in ARC shares. Today is an “update post.”

Since the last time I posted about Stadium Capital’s ownership (and purchases) of ARC shares, Stadium Capital has made subsequent purchases of ARC shares. Here’s the latest table reflecting Stadium Capital’s purchases of ARC shares from August 23, 2011 through November 1, 2011:

Transaction Date	Purchase Price	# of Shares Purchased	# of shares owned, after purchase	%age of O/S Stock Owned
8/23/11	$3.79	30,600	4,676,921	10.12%
8/24/11	$3.88	17,991	4,694,912	10.16%
8/25/11	$3.80	244,000	4,938,912	10.69%
9/2/11	$3.54	29,315	4,968,227	10.75%
9/6/11	$3.45	1,833	4,970,060	10.75%
9/8/11	$3.57	6,591	4,976,651	10.77%
9/9/11	$3.49	11,641	4,988,292	10.79%
9/12/11	$3.54	17,256	5,005,548	10.83%
9/20/11	$3.56	13,737	5,019,285	10.86%
9/21/11	$3.50	9,170	5,028,455	10.88%
9/26/11	$3.47	5,500	5,033,955	10.89%
9/28/11	$3.33	27,524	5,061,479	10.95%
9/29/11	$3.29	22,203	5,083,682	11.00%
9/30/11	$3.35	41,019	5,124,701	11.09%
10/3/11	$3.20	18,348	5,143,049	11.13%
10/17/11	$3.64	15,497	5,158,546	11.16%
11/1/11	$3.89	2,201	5,160,747	11.17%

From August 23, 2011 through November 1, 2011, Stadium Capital purchased an additional 514,426 shares, at an average cost of $3.64 per share. I check ARC’s stock price a couple of minutes ago – and it was at $4.94 per share. So at this point, Stadium Capital has an unrealized gain of $667,130 on the ARC shares it has purchased during the period mentioned above. That’s a gain on an investment of $1,874,134. Nice gain, huh! Well......

What I did not mention in the paragraph above – because I don’t actually know the facts – is that, inasmuch as Stadium Capital began acquiring ARC shares (Stadium Capital had amassed 4,646,321 shares prior to August 23^rd) when ARC’s shares were at a substantially higher price-per-share, I think that Stadium Capital’s investment in ARC stock is still seriously underwater. But, time will tell, perhaps 2, 3 or 4 years from now, if Stadium Capital’s significant bet on ARC will pay off.