When CVRR makes its first dividend payment after the first quarter watch CVRR leave LINE in the dust. When the newsletters and search screens show what the highest yielding security is in the United States and CVRR surpasses every mortgage reit, watch the small investors dump the mortgage reit for CVRR. Even if CVRR appreciates to $30 per share by end of the March 31 quarter, the yield will be around 16% on an annual basis. Most MLPs will be yielding around 8% and 100% higher yield on CVRR will cause a run into CVRR after the first quarter earnings and distribution.
Possibly, but picture this if you will...a major fire breaks out at the single facility of NTI, ALDW or CVRR. Pretty common occurance at refineries after all. But since these guys have just the one facility, it means halt to distributions for an indefinite period followed by an immediate crash in unit price of say, 75%, if the outage looks like lasting a while. That scenario is far from out of the question with the new refinery MLPs but is pretty impossible for LINE (or most other traditional MLPs). Part of the reason you get a high yield is to compensate for much higher risk, with risk factors that are unpredictable and can't be forecast in advance.