I have been doing some assessment, and comparative value evaluations of the CPP shippers, and CPLP specifically. I have come to the conclusion, and high probability assessment that CPLP will do a dilutive capital raise in the near future. They just have too much debt, in the current capital environment. I am going to go out on a limb here, and say CPLP will announce a dilutive capital secondary share offering in the next 45 days, or by the end of May, 2011. Then watch what the PPS does, in response, as supercilious bullish aestivation morphs to contumacious obstreperousnesses, lol. Perspicacious!
All three of you in this thread seem to be pretty well informed on this industry and CPLP. I'd appreciate your thoughts on these few questions I have. If CPLP puts out a secondary, what will they do with the money? Would that help the div. (although to put out a secondary just to pay a div. seems like a ponzi to me so I assume it would be to pay down the debt). Why does the company guide to a higher div for 2011 knowing that in a year there will be none? Also, at the end of 2010 the assets grew yoy as the debt stayed the same. Does this mean anything good or bad? Thanks in advance, Bud