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Buckeye Partners, L.P. Message Board

  • swartzabugger swartzabugger Oct 3, 2008 4:46 PM Flag

    Am I missing something here?

    This stock has a 9% dividend yield. Isn't that attractive to investors? Shouldn't that help to put a bottom on the price of this stock? Or, do investors really think we are going to stop using oil and gas? Any thoughts?

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    • 9.3% with a rock solid history of dividend increases Looks good to me. Sometimes Mr. Market plays Santa Claus and THIS is Dec. 25th!!!

    • The MLP is being dumped by Merrill and Goldman as they unwind the carry trade. Next quarter you will see their holdings greatly reduced. This a golden opportunity to load the boat. BUY --BPL, DEP, TPP. Do not buy them in IRA's as they will give you ordinary income and disqualify your IRA--you are limited to $1000 of Ordinary income in an IRA.

      THis isa once in a lifetime opportunity to buy these MLP's. Hedge are pretty stupid. Prudent leverage is fine. It is the rolling over of the debt that is the issue. None of these MLP's have near maturities they cannot handle. BPL is the best of the lot.

      • 1 Reply to sage533
      • Spoke to IR a week ago. They said they refinanced debt earlier this year. Debt payments dont come into effect for 3-4 years. They have plenty of capacity in their credit facility. Somewhere I read that they plan to do small synergistic acquisitons not the $500M+ ones. Well run and low key company from what I can tell. We are local to this firm. Marginal cost to transport is very low so they will always be cheaper. Capex needs are very small. I think most pipelines are basically a monopoly in most mkts they serve given the high investments to build one. Plus lots of regulation to get approval relative to zoning, safety, etc.

        I missed buying at mid $20s last week but I am keeping an eye for a correction to buy again.
        Best -

    • Talked to a Hedge Fund Manager. Its the debt $1.38BL.of it here. Fund Managers are dumping and not buying companies with debt with the current financial and market conditions.


    • Well today its paying over 11%.
      I bought in at $49 +, so at the current asking price the 11% dividend isn't helping much.
      I don't have the balls to buy in at the current level based on what the enconomy is doing.

    • More than hlaf of the traffic is refined products and it is a big player in midwest the manufacturing hub of the country and there is less usage of refined products due to slowdown in factories .
      Besides BPL has taken on more debt to buy storage facilities.
      Take a look at EPD,there is high volume today and this is a low profile stock with high insider ownership,dont know why volume picks up for EPD?

    • When there is a financial panic, safety-minded investors panic as much if not more than the strong stomached investors. BPL attacts safety-minded investors who are panicing now.

      So yes, it is a great value, but it may become an even better value if the panic continues.

    • Hedge funds and mutual funds are dumping stocks to pay off redemtions. On CNBC they were saying that this sell off may last several days longer. As long as many of these companies can survive they are worth staying in. Soon one of the best buying oportunities will be here and then you will be able to get some great buys.

    • just kneejerk reactions to the global meltdown. hang in there, let your stocks accumulate at a much higher rate....when things return to normal (and they will)we'll all be sitting on some hefty returns....then we cash out....

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