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Suburban Propane Partners, L.P. Message Board

  • sage533 sage533 Dec 28, 2008 5:31 PM Flag

    Fundamentals poor

    I have completely changed my mind on this stock/unit. Someone posted that volumes were down--I checked the 10K's and sure enough he was right.

    Gallons sold 2005--516mm
    2006--467mm
    2007 432mm
    2008 386mM
    Fuel Oil-- 2007 105MM, 2008 76MM

    The gallons sold trend is awful. I think this has to do with prices of hydrocarbons in general but mostly due to their poor pricing policy. I am ready to cancel service as the last delivery was at $4.13/gal. I called and they reduced it to $2.99 and then to $2.75 after I told them a competitor price was $1.99. If we cannot trust them with treating the customers well--it will be a failure. forget the yield, it will follow the fundamentals which are awful.

    sell into this bogus TV recommendation--Cramer is a fool.

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    • This would be enough to get me to sell. I bet they have a hard time passing the high cost through in the 4th quarter. I am a customer and former Shareholder. When I got my inflated bill I immediately called around to get the real prices-- 55% lower than what they billed me. The convention is that other companies will not fill a competitors tank. However, they do not know if you own the tank or not.

    • I hope the fundamentals stay poor like you say. because Im making a ton of money. lol. Have this stock for 7 yrs and there is nothing you can tell me about it that I dont know.

    • I did the same analysis. It is a pretty scary trend. The cash flow trend for the past 5 years is also poor. They get margin expansion in a volitile market environment like 2008. They are milking the complacent customers but that cannot last long. I have been looking over MLP's and wanted to buy this but you cannot fight the fundamentals ---and they are poor. This winter quarter could be poor as they are working off high value inventories purchased in the summer before prices crashed. They are pushing this high cost stuff off on unknowing customers some of whom are pushing back. I bad winter quarter would will take this MLP down.

 
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