not only was it downgraded, but dividend.com took it off their recommended buy list. That may have exacerbated the selling. I have owned it since $22, so I have some room for correction, and will meanwhile enjoy the dividend.
The key is to have a well diversified portfolio, so that one of your holdings will not destroy your value. If you watch for downgrades, secondaries that make sense, etc., you can buy into good, high yielding companies to hold for the "long term" and collect the income.
Addendum:--At this time (2-18-11 @ 1:30 P.M.) volume is much lower than the last few days and appears to have normalized. The price is off the bottom but about two (2) points lower than the top in a rising market. I would suggest that extraodinary volume is almost always associated with unusual events and volitility.
Saul: Are you suggesting that I should not call attention to the extreme volume during the recent decline?---Or that management has granted themselves thousands of options to buy stock at $11.23?--These are very legitimate concerns to all holders.You seem to have interperted my comments as accusatory of some illegal activity. Such was not inmtended and I did not do so. They may be a little greedy but I did not state or imply any illegal activity.--My purpose was to simply call to the attention of other holders facts which came to my attention and of which I felt others should be aware.--My conclusion as to the quality of management is a personal opinion which is every mans right.
Please note, you did not answer the real question posed. Just what do you feel is the correct value (price) of FGP?
I don't blame anyone for "getting out", the stock is overpriced. As far as "trusting management", I trust them as much now as I did when I bought it at $15 or $20 or $25. If it was about me trusting management, I would own nothing. Is this management 3 times better now than when the stock was all the way down to $8???? I am sure management had options at that point that were under water. Did they abandon ship?? No. Did anyone here feel sorry for them?? No. If you think they are unethical or doing something illegal, report
it and don't own the stock.
I am looking at the May $25 Calls for FGP.
You can buy them for about $1.60. That is basically buying them at the current unit share price. Any move up at all and, cha-ching, good income, and if FGP moves back up much over that time, cheap shares.
I don't have all the historical figures, but FGP has bounced around between $18 and $25 for more than a decade.
When I bought in about two years back I averaged in at about 18 and figured that $22-23 would be "fully valued". I still see that as a good valuation...
...however, with the interest rate environment still at historic lows, the distribution that FGP pays (and hopefully continues to pay) _may_ support the higher than historic trading range. If I were a recent purchaser of FGP units, I would just sit tight and believe that the selling pressure should end in the next couple of says and the unit price will drift slowly back up to at least the 28's.
And, didn't the CEO even comment about potentially raising the distribution?
Saul:---for three days now the volume has exceeded 3 to 5 times the average 100 day volume figure.----I suggest this is more than the Cramermericans "getting out".---Someone with very large holdings (insiders?) are getting out. ---I did not hear the interview w/ Cramer but I have to ask: Do you really trust management?---Did you know that they regularly grant themselves options to buy thousands od shares at $11.23.--I believe One large group of sthose hares will vest on Feb. 20, 2011.---I now feel I may have been mistaken in saying this is a "good" management. --This may not be a $29 stock but just what price do you feel is reasonable value for this stock??
I don't understand all this concern. This is a good company, it goes about it's business. But, it is NOT a $29 stock. It was discovered by the CRAMERICANS, they drove it up, and now they are getting out. The UBS downgrade makes perfect sense. The stock got way ahead of itself. Maybe it can go back to $25 and everyone will leave us alone!
Regardless. Earnings are coming out 7 March. While I didn't see the Cramer interview, CEO has stated Propane Sales are good. Not sure CEO would have made public comments if quarterly was not expected to be good as well. I'm relatively new to FGP, but I think management has a history of conservatively commenting on operations. True? Perhaps he new of the downgrade coming as well...