I think the kayne Anderson group has been dumping. They had something like 10mil now 5mil. shares.
There is some thinking that raising interest rates will hurt mid stream co.s. That might be true if rates were raising. Huh!
Sentiment is down. Missed revenue, dilution, 21 P/E and debt are pressuring the stock price.
Buy low sell high is how I make money (Divvy does not hurt either). This seems low to me with management executing well, focusing on growth. With countries stockpiling cheap crude, the higher Baltic Dirty Index should help renewals, and the macro economic environment seems to have bottomed and its future outlook improving.
I went back and read the CC and unfortunately, they did not commit to a question suggesting (to me) with increased future cash flow possibly an increase in the divvy. All they said was basically "we will have to see".
We have generated approximately $29.8 million in cash from operations before accounting for the Class B preferred units distribution. After adjusting for the Class B units distribution, the adjusted operating surplus amounted to $26.8 million, which translates to 1.1 times the common unit coverage after taking to account, the 17.3 million units issued earlier in the quarter.
Question: Right, but just – may be just a follow-up on that, in terms of the coverage ratio though, I mean are you guys happy with the 1.1 times where you’re now or do you see that changing at all over the next, call it year, 18 months?
Answer: No, at the moment we are staying at 1.1 times. And just to underlining what Jerry said, we feel very good about the crude and product market going forward, as we have a very reserved optimism, but optimism with these and we will – we would don’t like to make strong statements before we see things materialize. So we don’t want to overpromise, but we feel about good about it. That’s all we can say at the moment.
Missed the pullback myself but, did buy just south of $9. I like the nice yield and it was a little diversification from the numerous energy MLP's I currently hold. I am purely an income investor and look at any price appreciation as a bonus. Unfortunately, the energy sector has taken such a butt kicking that there has not really been any bonus's to worry about.
Yep, even I who hold many shares of MLP's occasionally call distributions divvy's; which technically they are not. MLP accounting is somewhat different than GAPP accounting.
Seems like Mr. Market disagrees with you. IMHO you are correct but, recent pricing does not reflect that. Divvy seems secure and that alone warrants a $10 pps.
With the Baltic Dirty Index skyrocketing higher, seems like a fortuitous time to be expanding the fleet. Looks to be an interesting Q4 and s great start to 2015. I believe I read that they plan to increase the divvy too. Seems a no brainer to accumulate from here ....
CPLP is an MLP,that chooses to be taxed as a c-corporation, meaning distribution is ordinary income, no K-1 and no return of capital. It's earnings are calculated after all distibutions are paid and earnings are positive and are supporting the dividend. If you don't believe me, I recommend you go to the website and investor contact for the explanation. We have about 35k units between my wife and me in our IRA's
I paid 5.5 for my shares and recently purchased more at 7.5 when the market took a hit. I'm long on this stock.
i am long here but only recently so am south of purchased price, i think that the location of the company is always going to have a negative effect on the price relative to a US located company.
recommend that you read and understand the structure of an MLP, that will answer your question. If this is snarky I apologize but you should not be investing in this type of security without understanding what you are getting into. In most cases the statement that as long as earnings are positive the distribution, not dividend is safe is true. Many MLPs pay generous dist and have year to year losses. these are more complex investments and there are some ramifications like K-1 forms at tax time and some restrictions when they are purchased in IRAs.
It's our biggest holding. Started buying at about $6.00 up to the low eights. Bought more on the pullback. I think it is a solid, well run, but largely unknown company. I like the yield and think it will be back north of $10.00/share in the next six months. The pullback to $7.34 was a gift. Also like SDRL at current levels,although more risky in the near term.
Did you consider that the high divvy may come from cash flow. I have not seen the financials but, their deprecation and amortization of their ships has to be huge..
I think what is confusing you is reported earnings are less than the dividend. The earnings are calculated after all expenses including the dividend. If CPLP was paying out more than earnings, the earnings would be deficit, a negative number.
That doesn't begin to explain where the money to pay the dividend will come from. Yahoo shows earning at $0.11/shr and the dividend at $0.93/shr. A brief explanation would be greatly appreciated. A snarky reply like the one above is not appreciated. I presume there has to be more than meets the eye. Is it tax-free return of capital with a small taxable dividend? That would make sense.
Thank you very much.
Baltic dirty tanker index has been rising since near the end of Sept.