I listened to the call and really don't understand the near 20% drop in unit price. Volume low to normal makes me see this as a knee jerk reaction with little to no merit. I've been in this a while (37 ave unit price) and have no reason to think this is not a great time to add to one's position. arbtrdr do you or anyone else have any insightful comments?
I'm attracted as everyone is in high yielding stocks. I've noticed recently that they all seem to be going down whether it's an energy company or a mortgage REIT. Almost feels like higher interest rates are coming and the current yields on OKE and OKS and similar stocks are'nt going to look that good. I remember 15 per cent monthly CD's.
The issue is mostly related to the problems with NGL pricing. Ethane and propane are mostly in rejection and this is hurting and going to hurt OKS more in the future. You also have the increasing interst rates putting pressure. Combine that with MLPs up some 25% from the December low and you have a selloff. I have not sold, but am only nibbling. The MLP market is fully valued.
As another thought - the yield on OKS dropped to well below where it belonged. They were increasing distributions at .025 per quarter. Cutting that back by some 80% and you extrapolate lower distributions going forward and thus a lower unit price. Make perfect sense to me.
you are most correct. the market is knee jerks irrational and down right stupid..
this ebbs and flows downward but always comes back stronger and higher.'
your analysis IMHO is correct. pays dividend in August. good luck whatever you decide.