It always amazes me that folks freak out when a stock goes down. You should always have a plan for what you will do if a stock you bought goes down. I usually buy more unless there is bad news specific to the stock. I bought more at 23.50 and if it keeps going lower I'll buy more. Future dividends will be lower but NOT substantially lower. Don't buy all at once and feed your money in gradually.
Sentiment: Strong Buy
My hunch is what we're seeing is a response from Wall Street related to recent rises in the price of crude oil. A rising oil price increases NTI's costs of operations, so is damaging to its business.
My rough estimate (admittedly not as precise as I'd like due to time constraints) is that a 7% rise in oil prices from a 2012 average would drive NTI's net income for 2013 to roughly zero, and the 20%+ dividend under such conditions could disappear.
There's no certainty, of course, that oil will remain as high as it is now for the rest of the year. if things settle down in Egypt and Syria, NTI's share price is likely to bounce back in the near term; if not, well . . .
If you want to stay invested in NTI for the longer term, IMHO it's a good idea to carry in your portfolio at least one position of equal size of an oil & gas exploration company; either one of the majors (from which I'd exclude Petrobras, due to state involvement), or a domestic US junior that is doing well.
I don't think the refined product will remain the same price with the increase in feedstock prices so I don't see the divi going to 0 unless they have a accident or plant failure of some sorts. jmho.
agree on owning oilers. I have substantial $$ in BCEI, KOG, WLL, and OAS. All good, solid companies with tremendous growth prospects and always on the radar for a buyout from one of the majors
I don't believe oil prices will stay at these levels with all the oil production coming from fracking in the US and oil sands in Canada. I'm in NTI for the long run due to the dividend.
It is frustrating that mid-east turmoil erupts just as I get into NTI though!!