is going on. Does someone know something I don't about VNR. Down-down-down. Is a screaming buy or a sell? The Obama dividend tax rape does not affect this. The dividends (distributions) were always fully taxable.
Exactly....Oil and Gas are down...that kills the stock...be patient... O&G will come back and so will the stock... meanwhile sit back and collect the Divvy, as a small bonus while you wait...or better yet pick up some more while it is down...
Maybe I can point you in the right direction. If you haven't seen and read the VNR presentation they made Dec 4, 2012 at the Wells Fargo Conference in New York City. It is on the VNR web-site. I would suggest you download and read the presentation. my takeaway is that the current selling is an OVER-REACTION BY UNINFORMED SELLERS to current low Nat gas prices and probably compounded by the "Fiscal Cliff" Slide 24 shows that the hedging policy used by VNR favors lower Nat Gas prices such as we are currently having.
A lot of pertinant information packed into the presentation and since it was presented on Dec 4, 2012 it is very current.
If the world doesn't end on Dec 21, 2012 as predicted by the ancient Mayan Calendar or the Fiscal Cliff on Dec 31, 2112 ,I have and will continue to be a buyer at these and lower levels if the fundamentals don't change.
" VNR distributions are Return of Capital."
That's not really true.
Anyway the point is that there is tax deferral but by the time you sell, all those distributions have been taxed at full ordinary income rates (ie. higher rate than dividends). You get tax deferral not elimination (except for step up on death).