At best BWP is a $10 stock. Dead money for years to come
After this dividend cut, there is no reason to buy BWP. Based on its guidance, BWP will earn about $0.75-$0.80 in 2014 while DCF will be about $400 million. However, these figures will continue to climb with weak renewals. It is hard to argue paying more than 12x earnings or $10. There is another 30% of downside in BWP. While it may be painful, BWP continues to be a sell even after this drop. This quarter completely any aspect of the bull case, and investors have to look elsewhere.