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Could you provide a link to the lower guidance? I see guidance of $1.92 in connection with it's IPO. http://www.cvrpartners.com/system/modules/com.cvrpartners/pdf/2012-01-26_UAN_Q4_Distribution_News_Release.pdf
see what I mean - people don't follow the company announcements and then act surprised when the price moves.The IPO guidance was for 2011. Hello, this is 2012 now. Here is the announcement of Q4 and FY2011 results released a few days ago.http://finance.yahoo.com/news/CVR-Partners-Reports-Fourth-prnews-3217470213.html?x=0In it, you find this statement:"For calendar year 2012, the company's guidance range for distributions is $1.50 to $1.75 per common unit."At an 8% yield, that equates to a price range around $19-$22.If you want to blame anyone for the price drop, blame the company.
Setting the target PPS of a stock based on the Divi Yield will result in disappointment more times than not. Relative to that methodology AAPL and GOOG should be $0.The only place that loosely works is with bond prices and even then the credit rating is more contributory than the yield.