i for one never said a cut was coming this quarter, but the fact remains clear that nrgy is short funding with respect to DCF and will be for at least 12 months or more. the weather here in the northeast is very mild and has been for some time, this will further impact their ability to cover DCF going forward. the projects coming on line will not cover the short fall. nrgy may not meet the street expectations on earning and I don't see how they can given the various negative factors - there may be further down side pressure to at least the 20 area. i was sucked into the stock by the insider buys at 23 and change. should have done the work before diving in. looking at the chart it looked like a bottom. now we are headed to 20 it seems. Tres Palacios TX dome is under performing. the spin off of nrgy best asset class- mid stream- will help but that was a prime asset class that nrgy now has only a 75% stake in. as that spin off grows nrgy collective "assets" will be enhanced. the question is should we own an under performing pipe when others like OKE - great mid stream pipe are raising their distros and will double by 2014. i still have some shares but this will take time to turn it self around.
Buy now and store it away like the smart money does...get a few 3% divi per quarter and if gets cut no big deal...as this market turns around and cycles you will be selling your shares at higher pps to all those suckers that decide to stay in the game and the new saps that enter..thats how the game works.
buy low sell high..I am a buyer now and then at 18 and 12..if I can be so lucky.
The CEO has 14M plus shares, he wants to get paid!!! and so should you.