Take a look at Yahoo's insider buying page. Heavy buying by the CEO and company in Dec, Jan, & Feb. + Stock is rated a strong buy by six analysts. + Div yield is about 11.5% Does anyone have any more info about div and company's ability to pay. This looks like a long term hold for an I.R.A, etc., fantastic yield + price appreciation. Any thoughts?
Check out the news - California is dropping MTBE; some of EPD's biggest customers are MTBE producers and they are part owners in an MTBE plant. I wouldn't bet a lot of new money on this stock right now. May be OK as a yield play but not for big capital gains since they pay out most earnings as dividends.
The objection to MBTE as I understand it is that it is not readily biodegradable. As a result when it gets into the environment it eventually pollutes water sources resulting in potential health risks. One of the precursors of MBTE, I assume, is either is secondary butyl alcohol or tertiary buytl alcolol. All these molecules have one oxygen atom in them. Ethyl alcohol has been used for years in the Mid West so evedently alcohol is a good source of oxygen for gasoline. The process for making secondary butyl alcohol and tertiary butyl alcohol has been know for at least 60 years. Both are produced from butylenes, normal in the case of secondary butyl alcohol, and iso in the case of tertiary butyl alcohol. A mixture of the two could be produced from a refinery effulent stream and used in gasoline directly with out the need to separate them in a distillation step. In the past secondary butyl alcohol has been converted into MEK, a paint thinner.
If anybody from the company reads these notes, why not simply use
a butyl alcohol or a mixture of them as the source of oxygen? The process for making it is well know, simple, and I would expect inexpensive. It would eliminate the step of converting it to an ether. I would think either butyl alcohol would be readily biodegradable. The mole ratio of oxygen in the compond is higher than MTBE and I imagine that would be good. It would seem to make everybody happy.