Ameritrade is claiming that my last KMP
dividend is RoC. Anyone else living with their
clearing house? The old Datek clearing house
always reported this as a partnership
distribution. (true, most of it is RoC,
but I would think that's a K-1 issue, not
something reported w/the dividend).
Anyone looked into this before?
i'm not saying that getting dividends vs. salary is bad. I'm saying the significance of "no salary" isn't much when he's already taken $80MM out of the company in dividends to date and he is getting $20MM/year. if he was paid $500K a year or not, it wouldn't make a difference to his life. so i like the model, yes, i just think the significance is overdone. i didn't miss the point, dillweed, you missed mine.
My interpretation is that the LP and the GP still have 100 shares and the shareholders of the company that was acquired have the rest, or if it was a cash deal, the company now has more real estate and less cash.
I'm not the General Parnter and don't own GP shars so why do I feel like I own a money machine? Maybe it's every quarter when I check my account and I see the cash. Maybe you don't know what the distribution times 10,000 units looks like but it's real $ and comes every three months. It's probably my most predictable investment to date.
You really are thick.
An example, assuming the GP has units:
LP: 100 units
GP: 100 units
Acquisition: 100 units
Total units after acquisition (including GP non-dilution):
Acquired co: 100
Existing LP: 100
Huh. Acquisitons are not dilutive. You now have more assets as well as more shares. Whether it proves to be a good deal or bad deal depends on the nature of the deal. Think of the GP as owning 50% of the shares and the LPs as owing the rest. When an acquisition is made, the acquired company becomes part of the original company, and the percentages remain the same. The GP still owns 50%.
I was off on one number by a trivial amount. I'm glad to correct myself. The maintenance capex number is irrelevant because it's something that KMx makes up out of thin air. They can invent any number they like and call it maintenance capex.
The most massive fact about this company is that the GP gets 50c on each incremental dollar. Let's perform some elementary arithmetic. Let's say that KMP has 100 million units and acquires another company with 100 million units. 200 million units now, right? Well, not really. Because the GP take is never diluted, it's as if the acquisition was really made with 200 million shares. The existing limited partners' share in the company goes from 50% to 25%. The GP, of course, has every motivation to make these deals because it's playing with funny money. It can make the acquisition with the limited partners' units because its share never gets diluted. It's an incredible money making machine, but only for the general partner.
What's correct is that you didn't know the real numbers. How do you expect anyone to take you seriously when you quote completely incorrect numbers and then openly correct them when someone challenges you? Additionally, it is clear you don't know how to calculate cash flow for the purpose of figuring distributable cash flow. In short, you don't know jack...who wants to argue facts with someone who doesn't have a grasp of them to begin with? Why don't we start calling you Kurt Wulff...same issues, different names. No knowledge of the facts or accouting issues.
He posts on the EPN board as well, the same type of dribble. Doesn't appreciate depreciation, but becasue of people like him, there is a lot of opportunity in these stocks. Let him speak on.