The price target cut to $31.50 by Citicorp really got me moving on my last sale. I have a dickens of a time making money on a stock if I pay more than the WS price target. I'm applying the same logic to holding on to an investment. This logic kept me out of almost all MLP stocks at their highs and even the bluest of the blue chips Kinder Morgan is off its high. I still own some NRGY; just waiting for perhaps somewhat better prices to sell more.
Lots of other stocks out there with better growth stories, dividend/distribution growth and price targets well above current market prices and I think better investments.
propane business is in both a long term and short term decline. Both NRGY and ETP are struggling with their propane business. Price target cut from Citi and I expect more to follow. SPH is also in decline. I have a short-term loss and will not let that turn into a long term loss. So, time to sell and move along. I think the storage business may pull things through for the long term, but I don't see that as a catalyst for this year.
Sold half a couple of weeks ago, sold half of the remaining Friday and will probably sell the rest this week or next.
Yes, for Capital Gain or Loss. No, for Ordinary Gain. Note, even though you sell at a loss, ordinary gain may be substancial of course depending on how long you hold your MLP stock. Ordinary gain is depreciation capture.
FerrellGas just made another propane acquisition. I plan more research on the future of propane before making decisions on selling. I usually "trade around a core" and selling low doesn't make sense unless the business model is in trouble. If NRGY is going to go up in response to an improvement in propane demand, I'll collect the dividend for the meantime and make selling decisions when the stock is near a 52 week high.