Yeah. Single-day fluctuations don't really mean anything unless you're a trader (I'm not) if the stock can't hold the price. I've held this stock for quite some time. It's been disappointing that these annual lurches upward are usually dragged backward during the summer. But the overall trend is steady and upwards over the last few years, and that's one reason I'm happy to hold on for the foreseeable future.
I'm excited that it has so far, but SGU swings so wildly during the summer I remain cautiously optimistic. Zero plans to sell regardless.
I have been an owner since $2.50 painful and now, rewarding. Dividend plus appreciation is the best. Great management. New high. I have not seen that high in ummm let me see, many, many years.
The PR starts off noting that revenues are off 14.6% from the prior year, you would think that was a bad thing. It is not. The price of heating oil is down 36% from the prior year more than explaining the entire drop.
If I had written the PR I would have led with;
- ebitda this quarter ($127M) was the best quarter in at least 30 quarters
- TTM ebitda ($142M) was likely the best in company history
. (FY2003 ebitda was $106M, on 36.1M units)
Subtracting; taxes (~$42M), interest (~$14M) and capex (~$9M) leaves $77M of free cash flow ($1.34/unit).
I see the point. Thanks. Over the years, with the appreciation and div. I have received, I have looked at that as a very small price for me to pay.
Most stock dividends are qualified as are the dividends from SGU. Very few dividends are ordinary (mostly from money market funds). The comparison I am making is between SGU's payments and those from normal MLP's. The normal MLP's don't pay corporate income taxes and pass all their income direct to the partners. Usually this cash is completely tax free due to high depreciation expenses which are non cash deductions from income. SGU does not have this advantage due to its stucture. So my point again is you get a K1 without the tax advantages.
I don't think there's complexity issue with the K-1. There is a tax advantage if you keep this asset in a TAXABLE account. These dividends are QUALIFIED as compared to ORDINARY dividends. I have this asset in a taxable account therefore benefit from the tax savings as being qualified when received. If you put this asset in a deferred account, upon distribution they become ORDINARY dividends and you get whacked and lose the tax savings, again, when you cash out the dividends. I have been doing this for the past 8 years or so, it's very easy not complicated at all.
With a 10% increase in the dividend, I am surprised the price has not risen to closer to 8. Perhaps nobody is watching or in fact this move was fully anticipated. I still think one of the problems is that you get the complexity of K1's without the tax advantages, putting SGU at a disadvantage versus the more conventional MLP's. I wish they would bite the bullet and collapse the corporate structure.
It still amazes me how Wall Street still does not have a clue when it comes to this Company, are they ever missing the boat. Just goes to show you, an individual investor can know more then the big high priced money managers. We all called this months ago.
Sentiment: Strong Buy
1:46 pm Star Gas Prtnrs increases its quarterly distribution to $0.095/unit from $0.0875/unit
The best part is they normal increase in half-cent increments. This time the dividend is ballooning by three quarters of a cent. My IRA loves this news.