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Star Gas Partners, L.P. Message Board

  • bj_54556 bj_54556 Oct 1, 2004 11:36 AM Flag

    SGH total colapse. Why?


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    • Yes, Suburban is one I had in mind. Good company!

    • Not short, not even sure it would be a good bet because you have to pay divs until they cut them and you get a gain as the stock collapses. Too much risk that things drag out and I,ve never been short anything anyway! No guts no glory I guess. I own SPH. Is that one of your 2? I think so.

    • MLPs do not pay divs from GAAP earnings. MLPs can have negative GAAP earnings and continue to pay "distributions" (divs?) based on cashflow. For example, depreciation, depletion are not "real expenses" but rather are merely accounting entries in the ledger. Stay with SGU; would not speculate on SGH.
      Regards, Lex

    • " I dont know the report you talk about but most MLPs do cover their divs"

      You provided no names, so I'll help you.

      Amierigas #1- Does not cover
      Ferrell (#2 I think)- Does not cover
      Star Gas #7- Not bad company to be in.

      Examples of some of the largest propane companies in the business. I would hardly call them exceptions. What are your examples? Again,
      I'll help...hint I can think of two.

      I'm not saying there are no issues to be addressed, but you just seem overly concerned with <MY> distribution. If you're short, just say so.

    • Sounds like SGU is some kind of perpetual motion machine--no need for earnings (energy), dividends just keep on coming! I dont know the report you talk about but most MLPs do cover their divs with rare exception or they would cut them to avoid running out of money to operrate the business. NO?

    • You can do your own homework! Propane MLPs that don't cover is old news (see RJ MLP Report). I do own, and I'll continue to collect my dist., like clockwork.

      "You own it: Do the homework and tell us if they are earning the div!!!!"

      The fact is <I'M> earning it every quarter.

    • To be honest, I have not done my homework in over a year. The last time I looked, they were not able to pay SGH or most of SGU div out of cash flow. They paid it by selling more stock or maybe by borrowing. I still watch SGU because I once ownwd it (sold at 20 or so) and I hate to be wrong! You own it: Do the homework and tell us if they are earning the div!!!!

    • Can't say for certain, but the warmest quarter ended yesterday. Insiders and employees mostly own that position. What do you think the talk is around the office about reinstating the distribution this quarter??? Perhaps that explains it.

      Some may be selling, pushing the price down, on the idea that the dist. won't be reinstated this quarter. I guess the thought process is: Let it sell off a little more, buy even cheaper, and watch it go through the roof when the dist. is eventually reinstated....The risk is missing the pop when it jumps almost 100% w/ the announcement to reinstate.

    • My guess is that SGH is going to skip their dividend again.

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