I am now down 51% on this stock. What now? Does anyone (except Beefstu) have any intelligent advice or comments? The last purchase I made was at
$ 24. Does "never try to catch a falling knife" apply here? Looks like that is exactly what I did. I have been "gritting my teeth" and holding on? Another foolish mistake?
My long position is at $23.97 average per share. The present dividend rate is 11.8% at that price. I'm for holding now. A 50% cut in the dividend would leave me at a 5.9% yield. That's better than any money market return. I may be waiting a long time to go green on this stock, but I can afford to wait for at least another year.
Hi you are not down the dividend is still the same so far. The downward trend is only if you want to sell, or wait for it to come back up again which it will, and if the winter is colder next year. The stock will go back up also. Be patient.
Cash out and buy FGP instead- the distribution is not in question of being cut...
No salt mines, storage facilities or pipeline build outs...
FGP is into acquistions of other propane distributors.
Why store with all the new nat gas frakking coming online- propane should be readily abundant to flood demand - I think distributors will be the beneficiaries as the auto-conversions hit the markets. The tank exchange may not be just for grilling soon...
I sold my Nrgy @ ~18. @ minimal loss.
Went into FGP @ 18 to capture the recent distribution. Down a little at this point but feel secure in the blue rhino and mass distribution network.
No way will I come back to Nrgy with distribution cut on horizon, removal from the index, and catering to nrgm unitholders with any extra cash through increasing that distribution rather than the nrgy unitholders.
Just my thoughts.
He bought it for the yield then, and it was good enough to buy. He's got the yield he expected, but now realizes he could have waited and got a better deal. Who could have known? That's life, but he made a decision on that yield, and nothing has changed on income. All you can do is make the best decisions on the basis of the information you have at the time. It happens to everyone, but the Market will once again love the stocks they now hate. It is very fickle and irrational.
Fund managers make 90% of trades. When one sells in an Industry, the others have to do it too, or they risk that their averages could fall below the index of the Sector Funds. They can't risk that, so they all do the same thing. When they're selling, it usually a good time to buy.
took our lumps and reinvested in per and gabux and chkr. per and chkr two new royalty trusts taxed as mlps with k-1's. prefer per with a strong distribution and over 95% oil. gabux a fund that has paid .07 distribution a month since 1999 and has a current yield of around 14%. invests in mid size utilities, pipelines and oil and gas companies and few other stocks.
Now what....Why don't you just simply take a "good" tax loss, and rebuy all (or at least 1/2) of this back after all this settles (around May)? - I can guarantee you will reap the tax "profit" by doing so, save you a lot of stress (or dental fees by "gritting [your] teeth" -lol), and re-think this investment (no sooner 30 days as per IRS rules) definitely AFTER we know how bad NRGY's distibution cut is going to be(and at least see its ultimate direction....up or down, down, down) - G.L.!
<<Why don't you just simply take a "good" tax loss>>
I always sell a loser before it turns into a 1-year loser. Even in my tax deferred and tax exempt accounts. It did not work out, it is a piece of paper, get rid of it. What looks best now? Something you lost money on? Unlikely.