ETP should announce a 2 for 1 split like ETE did last month
Way too much volatility in ETP stock on puny volume action. Time to increase the available units to attract more retail investors. No doubt in my mind that much/most of the crazy ups and downs on ETP are due to the institutional investors and ETF's.
ETE now has 560 million units, post split. ETP has only 380 million units. With a 2 for 1 split, that would increase to 760 million units. More importantly it would open up the market to more retail investors, who would want to buy ETP in 100 share blocks. With the 100 share blocks it makes it easier to sell covered calls.
There are a lot of retail investors who like the high yield coming from ETP, so it makes sense to open it up to more retail investors. The institutional investors don't care - that is why they are selling ETP whenever they can, hence the inexplicable downdraft this morning.
In any case, it is high time for Kelsy Warren and gang to do what worked well at ETE and that is announcing a 2 for 1 split.
ETE announced years ago if it got over $80 they would split. Would think the same for ETP. Liquidity - there is plently already. As to selling covered calls - nobody who has owned ETP for very long is going to risk losing their units and taking a huge tax hit for a bit of covered call income. All it takes with MLPs today is a tiny bit of good news to move the price up significantly. As to volitality - Where? ETP has not moved much at all.