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Crestwood Midstream Partners LP Message Board

  • vickersviscount vickersviscount Jul 20, 2011 11:51 AM Flag

    Giving money away and no one cares?

    CMLP just announced another increase in payout, and so far we have traded only 29K shares. Am I the only "idiot" who likes getting a nice income stream? Does everyone else want to follow the hot money on Apple or Facebook? Oh well, back to my regularly schedule golf game.

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    • Stock has a bad chart. Div up stock
      down. I still have hope but selling
      20 % at a time. If and when its all
      gone thats it. Never to return. That
      is how i trade. We all get a stinker
      once in a while.

    • One should be aware of the analyst coverage of a stock BEFORE one purchases it. And CMLP is not covered by Barclays, Citi, Goldman Sachs, or RBC Capital. For many MLP investors, CMLP is off the radar. So when good news happens, it goes unnoticed.

      CMLP also lacks a history of consistent distribution growth - which messes with a logical run rate expectation. So there is no clear picture if the 4.54% distribution increase is a signal for higher forward distribution growth [in the mid teens] - or if this is just a lumpy increase that will be followed by anemic increases [note the year over year increase of only 9.52%]. One will have to read the tea leaves from the information in the Q2-11 conference call to attain a clearer distribution growth expectation.

      MLPs with distribution CAGRs in the mid teens should logically sell at yields in the mid 4 to mid 5s [examples: EPB CHKM and WES] and not in the 6s [like CMLP]. And even if CMLP had a higher CAGR expectation that was confirmed by the MLP analysts, it is still 'off the radar'.

      So in sum, I am not surprised by the lack of volume after the very positive distribution announcement.

    • Yes, you are right ... CMLP is a great firm to own ... decent income, with much less stress than many others