It seems to me that if you do the math, by buying CVI you are getting about $43 dollars worth of CVRR stock. CVI still owns over 84% of CVRR. At the current price you are getting all of CVI's other interests for only an additional $12 per share. Of course you are giving up some yield but still getting over 5% at the current rate of $3 per year. I suspect the free cash distribution could become an annual thing. And you avoid all the tax and record keeping of a MLP.
Am I missing something? Is this the best way to invest with uncle Icahn?
i like what your saying beau i will watch him closely i think in the short term cvrr is goin to be a big gainer i think out of the 3 entities it has the farthest to run long term maybe a year from now cvi mite do better . he can use cvi as an investment tool also a nd if he does what he uses it for is what i would change to. we need to see the payout i m guessing to get the appreciation of the other pure plays . nti seems like the people in it are just looking at the past . the immediate fiture is not as rosy as the past with a major shutdown cumin. looks like they mite bebuyin gas and deisel from us for a month or better . also i like the stability of the gov taking a percentage of our finished product. any way slow and easy the man and his team are hated by some but i think him and his team are doing very well and it looks like with this one will continue to do so . enjoy
Even if you own it in an IRA you can get tagged for a tax payment. MLP's are very complicated.
CVI has 87.2 million shares outstanding.
CVRR has 148 million shares outstanding, CVI owns about 84%
UAN has 50.9 million shares outstanding, CVI owns 69.7 %
So by buying CVI you are getting 1.42 shares of CVRR worth $43.
You also get about .40 share of UAN worth $10.30
You are getting $53 dollars worth of stock and all the other asset of the company (including a pipeline) for $2. Seems like something for nothing.
Am I using outdated figures or making some other error? Seems like a sweet deal from Uncle Icahn but there are no free lunches as they say on Wall St.