people bash fgp well thank you for helping my profits 10 to 19 is 9 kaching
Because it is a good income producer to the unit holder. Because it is a steady-eddy business, with a predictable income in good times and bad. It will rise back to its historic $22, at best, unit price, but with a near 10% distribution...who cares? Just pay me my predictable .50 per quarter income.
<<< I'd love to see the stock price for FGP go to 35 or 40 a share. <<<<
that won't happen. see the historic chart link above.
Some people look for high returns through equity appreciation, some of us want decent return with lower downside risk to our investment. 10% here beats the heck out of what the Fed has given us as a choice at the bank.
For my risk taking dollars I daytrade. For my income producing dollars I own FGP, EPD, ETP, KMM, KSM, NIO and direct ownership of corp bonds of GE, CAT, JPM, etc...
This is an write-up about the direction of Ferrellgas from 2006. True is is very aged at this point but it does provide good insight as to the attitude of the leadership. I'll let you draw your own conclusions. It does mention both companies we have been discussing.
Great! If your happy with a near 10% distrubution, stay with it. Pure equity appreciation is one way to play it, I guess. It's old school, but nothing wrong with the method if it fits your profile.
I for one will pass. Some of the reasons follow:
Date Feb, 09, 2009 "Ferrellgas Partners LP has started an offering of 4.5 million common shares. It plans to use net proceeds to repay debt under the unsecured credit facility of its Ferrellgas LP subsidiary."
NRGP increased their dist. and FGP did not.
Thanks for posting links, but I don't follow links, I have been tracking FGP for 15 years....I know the history and how they run the business. I have no doubt the unit price will not climb much higher and I really have no direct interest either way.
I have no predictions for FGP or its unit price. I said I would love to see it hit 35 or 40, but I also don't see that happening in my prediction models. I did see it bouncing back, but again NRGP was a better fit for me and my investment dollars.
I will take a look at the other stocks listed. Thanks.