RCAP
RCS Capital Corporation
Finance/Real Estate
03/16/2015
Presented
| Date | 03/11/2015 |
| Price | $11.46 |
| Market Cap | $0.84B |
| Ent Value | $0.84B |
| P/E Ratio | N/A |
| Book Value | $8.22 |
| Div Yield | N/A |
| Shares O/S | 73.66M |
| Ave Daily Vol | 1,030,000 |
| Short Int | 16.40% |
Current
| Price | $0.01 |
| Market Cap | $0.00B |
| RCS Capital Corporation engages in the independent retail advice, wholesale distribution, investment banking, capital markets, investment management, and investment research businesses. The company offers independent retail advices, financial products, and investment solutions through a network of independent channel broker-dealers and registered investment advisers; and multi-product distribution platform of direct investment program offerings to independent broker-dealers and the retail financial advisor community. It also operates as a registrar; provides record-keeping services; and executes the transfer, issuance, and cancellation of shares or other securities in connection with offerings conducted by issuers. In addition, the company provides strategic advisory services comprising advising sponsors in the structuring and development of new direct investment programs, and registered investment funds and other products; advising sponsors and companies with respect to direct investment programs; advising direct investment programs primarily for non-traded real estate investment trusts in connection with liquidity alternatives, which include listing on a national securities exchange and initial public offering transactions; and debt and equity capital raising advisory services, such as structuring, pricing, and marketing services. Further, it offers transaction management services, such as services related to offering registration and blue sky filings; regulatory advice; registration maintenance; transaction management; marketing support; due diligence advice and related meetings; events; training and education; conference management; and strategic advice. The company was formerly known as 405 Holding Corporation and changed its name to RCS Capital Corporation in February 2013. RCS Capital Corporation was incorporated in 2012 and is headquartered in New York, New York. |
Publicly traded companies mentioned herein: American Realty Capital Properties, Inc. (ARCP), Ameriprise Financial, Inc. (AMP), LPL Financial Holdings Inc. (LPLA), Raymond James Financial, Inc. (RJF), RCS Capital Corporation (RCAP)
Highlights
Shares of RCS Capital (RCAP) came under pressure late in 2014 due to headline risk surrounding ARCP’s accounting issues, and its pulling back from a $700 million deal to buy Cole Capital (from ARCP). Headlines such as “[Nicholas] Schorsch’s RCS Seeks Distance From ARCP Accounting Errors (Bloomberg, 11/20/14),” following the disclosure of the issue kept the pressure on. Schorsch has since resigned from his board position at ARCP (which he founded), and the presenter believes the risk/ reward setup with RCAP is very attractive (with shares trading in the $11-12 range). The stock is relatively undervalued and he sees the potential for shares to appreciate to at least the high teens over the next 12 months, principally on strength in the retail brokerage business.
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