The downturn of the market yesterday (Thursday) caught a lot of us by surprise. But it illustrated how fear can quickly douse the appetite for risk. The risk, of course, is just how big the distribution will be. But you see how many things affect the price of a stock or the market in general, and how it is mainly perception of the value in the short run.
I'm playing the dip as just that, a short-term retracement that will be erased next week.
There are a lot of other risks, as I think you know. They must match or beat larger competitors--RGNC, ETP, EPD and others--in the Haynesville; that'll require capital, maybe more than they have or can raise without dilution. They still have the problem of making their South Louisiana plants profitable, which appears to be a function of the markets, largely beyond their control. They need more well connections in the Barnett, again pretty much beyond their control. And they need to produce enough DCF reliably enough to support a distribution.
Well-stated, iner. I was talking about short-term stuff (should have been investor sentiment rather than consumer sentiment, BTW). The next news item to move the stock will be the distribution. We have no idea what the normalized DCF will be, do we? It ain't been normal for quite a while!
Anyway, it was interesting to watch the price action on Thursday and Friday.
Good call...always fueled my speculation that Wall Street is run on fear, ignorance, greed and stupidity, with the occasional suicide to delight the day of the person who made a literal killing in puts for that day. RAT B....... !