I just bought yesterday and then comes the extremely negative SA article. I was interested in the 10% divy. The article is pretty damning and I wonder what the take of long-timers here is on the viability of the dividend and the company. I liked the Mr. Bar-B-Q acquisition. Full disclosure: I myself switched to NG from Propane on my home BBQ 3 years ago, due to cost issues and the weight of the tanks was bad for my back problems.
Just looking back over the six weeks since the anonymous slam on FGP by a so-called hedge fund manager on March 26th; and what to you know, we're trading higher than we were on that inauspicious date. Of course, Keubiko may have the last laugh months or years from now. But his exhaustive efforts thus far have flopped.
It does not surprise me that he is a short, but does any of his argument about income not being sufficient to cover the dividend hold water? BTW, I also hold CODI and PSEC for their strong dividend models.
I agree with others here, in that FGP trades in a range. I personally am patient, and add when it drops to lower teens. I have it in my account to produce income for reinvestment. There has been much negative sentiment aound here lately, about the viablilty of FGP to keep the distribution, but it keeps coming every quarter. Thats what makes a market. All I can say is that I have owned it for the last couple years, have a cost basis lower than what it is trading at today, and have collected a 10-13% dividend , depending on where I bought. Works for me.