Global Partners LP Message Board

  • jrad52 jrad52 May 9, 2011 1:56 PM Flag

    OK, now GLP can rise

    I'm out, FWIW. It took a few days to get my price, but Q1 scared me. The basic business took a hit when "opportunistic" buys became unavailable (continuing into Q2, per the company, which does not bode well for Q2 results, either) and the gross margin on the extra gas sales didn't make up for the cost of the business.

    GLP made 39 cents in Q1. Ignoring the gas stations for a minute, that's a disaster for a company whose best Q is always Q1. You have to hope that the seasonality is going away, with the gas stations offsetting the heating oil business. Maybe.

    And operating cash flow is Q1 was negative $ 60 million compared to positive $ 45 million in Q1 2010. For some reason, GLP paid down its accounts payable in Q1, but even if you ignore that, the cash flow dropped by $ 50 million, year-over-year.

    Anyway, maybe I'll get a chance to buy back in cheaper. But my track record for selling MLPs is not so great. Sometimes I'm right, but I sold MMLP and LINE too soon, so feel free to ignore me and my worries.

    Good bye for a while.

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    • Hey, for once I was right. Doesn't happen too often, but GLP has dropped quite a bit since I left. Not enough to tempt me to buy back in yet, though. It's funny. If GLP (or the family's privately held business) is really screwing the gas station owners like the story claimed, why isn't GLP making more money?

      Anyway, I'm still scared of the market and I think GLP has at least another $ 2.50 to drop before the pain ends for a while.

    • I don`t think so. Had two misses in a row and they will miss two more quarters.They even missed AFTER analysts lowered projection. I think you did the right thing.I`ll buy back at $20 for divvy purposes only.

13.56+0.03(+0.22%)10:16 AMEDT