So basically you are saying, "management has done a good job, but I am guessing they will not keep doing a good job". Sounds like a gamble, which is technically what all trades are, but especially shorts of a company that is not fundamentally broken and has had recent success.
ifsp, I'm not answering as a short, nor do I hate STON. I am however a former SCI (retired), and would suggest you might wish backtrack on this MB. Additionally, I might add I have no axe to grind, merely sharing some observations from decades of experience within the deathcare industry. I currently hold no shares of any publicly traded deathcare company, and my recent rekindled interest a few months back came about due to a combination of STON making the list of largest daily % losers,(I've found some great opportunities in overpunished companies by following that) and the inescapable misfortune of attending services for 3 relatives in Nov/Dec.
I would encourage you to look back at the history of STON's peers, specifically SCI, STEI and CSV. When you do that you'll find they are trading at a fraction of their 1999 share price. Prior to that year you'll find they enjoyed some pretty good years, investor interest was much greater than it is today,(attested by trading volume comparisons then and now)
I would be remiss to acknowledge that 1st call concensus for SCI is strong buy, and the others are rated buy. The Seeking Alpha writers all make good points and leave their readers to ponder who is right and who isn't. I find no mention of what I perceive to be the achilles. You will also find OAS Forbes is providing lotsa print favoring the deathcare industry. Once again they only speak of the forest they see and not the trees.
Yes, Stonemor is different, it's an MLP. It is however the infant within it's peer group and requires growth and favorable industry fundamentals. Are either present or at hand, and can they recover to their previous highs and increase their distribution?
BTW, the poster behind you spoke of shorts covering like crazy. Short interest contracted to just under 44% from the 30th of Nov to Dec. 15th. I'd say the majority made their money.
Traveler,two comments.Because your views were endorsed by U_thoughty you might want to reconsider them.Secondly,it is my understanding that the death care industry is very fragmented with many mom and pop operations.Ston appears to be trying to consolidate its business by buying up some of these smaller operations.Dont you think with ecomomies of scale resulting from combined operations they can continue to grow the business.I understand there may be more cremations in the future,but people continue to die and it would appear the services offered by ston will continue to be in demand.Also,dont you think Ston's mlp structure is a good way to provide decent distributions in contrast to other death care operators.