volume this thing had about a month ago that took it under $4
the big guys knew something
they always do
that should have been the clue to get out
glad I waited to buy, I will be waiting on the dust to settle here then maybe pick up a few with hopes of the distribution starting again
somehow, the words "I told you so" just doesn't seem to fully explain what happened here
Bull crap rus, there was no way to predict this. I wouldn't have expected this even if I knew the borrowing base in advance, it being such a small component of the bank line. I'm still rather amazed Mills and the board did this, they made all kinds of noise about re-jiggering the hedging to support the distribution. Just because you asked a couple of uniformed questions doesn't make you an instant prophet.
It is predictable as just about every capital intensive business paying big yields, energy and shipping in particular, has seen a capital impairment after asset value writedowns followed by dividend suspensions to service the debt.
Nobody has 20/20 vision.
At one moment I was tempted to buy XTEX, but it was too much debt so the distribution resumption was too much in the future. EROC is another story, it is making between 160-200M in adj EBITDA between 160-200M in this terrible scenario and the subordinated holidays gives every incentive for management to resume it
160-200M in adj EBITDA for a market cap for a current market cap of 310M and a manageable debt.
I got out of eroc at 5.85 when BBEP took its hit to buy more BBEP and because the potential was for the distributions to be cut at many MLPs. made great return on short term on bbep and exited now I bought 20k shares this am at 3.8 this opening because this will be back at 4.8 by friday
Yeah I just got my head cut off, but yet again I'll be breakeven if the pre-market prices hold up. This is a good lesson to be diverisifed, but if the price action get really ridiculous I'll look to be adding more.