So now we see - does the addition of another coal MLP bring more attention to the sector, helping NRP? Or are the only people likely to buy FELP the same ones that already invest in coal, so it draws money away from NRP?
I'm sticking with a price range of 7.5% to 8%, which would be $ between $ 17 and $ 18 today, but I can't see it getting there any time soon. I think by June 2015, the distribution should be at least 5 cents higher per Q, so I could see a price of about $ 19 by then. All in all, I figure $ 18.50 is the most I would pay for any significant position. I bought 250 units this morning at $ 19.14 just to remember to track FELP and to feel smarter than whoever bought last night.
I think the underwriters and Mr Cline's friends will support the price above $ 19 for a few weeks at least. Then, we'll see what happens. I'd like to listen in on a few conference calls today to see who is blaming who for the lousy IPO reception. Should Mr. Cline and his co-owners have sold fewer units? Maybe go out with a lower price? When they named the expected price range, they sort of locked themselves into the $ 20 price - no one wants an IPO that goes out at the low end of the range, or even worse, below the range altogether.
The funny thing is this: I use a discount broker that is trying to sell new issues. But it seems the only new issues that it gets an allocation for are ones that no one else wants. So I was surprised that my broker didn't even try to sell any FELP.