this is how they grow. They sell units or issue debt. They take the money and build infrastructure (processing plants, pipelines, compressor stations, a 200 railcar rail yard etc.) They collect, process, distribute and ship the fluids on long term contracts. The profits are distributed in mostly tax deferred increasing distrubutions to the unit holders. Here is a link to MWE's past history of distribution payments from the IPO in 2002 to now
I've been through this many times and IMHO it is just business as usual. A time to buy on the dip before it continues on higher whenthe projects currently being built are completed and become operational.
HI Buy..''I read every post that your guys make, and I am learning..I have thoughts that this is the APPLE of the MLP's..(JMO), but I knew they were getting into overbought area, and would have sold today(at least half) looking for a new entry, but spring is here and didn't get home till market closed..Boy,, timing is every thing. Just going to spin tires for the next 4-7 weeks..if you go back to the Dec offering, and the price in the next fews days, all we have to show for 4 months is 73 cent dividend, and maybe 4% growth. Would love to have the money I had at 2:00 avail for the next few days..But not complaining..have made nice money on this stock so far, but started to think you could buy/hold with this one..But still better than fighting the up's and down's with other stocks. Thanks again to everyone for all the information they write..This is going to be a great stock in the coming years. I am just not going to look at the puter for the next 4-5 weeks lol
>>>..if you go back to the Dec offering, and the price in the next fews days, all we have to show for 4 months is 73 cent dividend, and maybe 4% growth. <<<
I don't know what you are looking for.
Since the Dec offering you have received a .76 distribution in the next 9 months you probably will receive the following 3 distributions .79-.82-.85 and if we get 4% a quarter growth that you are complaining about, you will have 16% growth for the year and $3.22 distributions andwe will be at a $3.40 annual rate for distributions. What are you complaining about? Do all your other securities do as well or better? Do you realize that this is Publicly traded Master Limited Partnership (MLP) and trading it will be a tax nightmare? Do you know that MLP's don't pay dividends? Do you know that they pay distributions, and that distributions are mostly tax deferred?
MWE is not another Apple. Apple has never paid one penny in dividends.
I consider the new events as a buying opportunity. It appears you don't. Thats too bad for you. Good luck anyway
pt, You don't really want to trade this stock--it'll drive you crazy at tax time. If you want to trade around your position, use options; the vol is usually low so they are not too expensive.
In December, MWE issued over 10M shares; the price dropped from about $56 to about $54 at close, I believe, but recovered and kept rising nicely as the market digested the new shares and the continuing good news. This was the most recent issue. The same thing will likely happen now, just as in the past. Consider some long-dated calls.