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Vanguard Natural Resources, LLC Message Board

  • dmraegen dmraegen Nov 9, 2012 9:53 AM Flag

    Whats Goin On????

    Can someone explain to me why VNR share price is dropping so much? It appears to be dropping worse than other MLP's and I just don't get it.

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    • ktcurry Nov 13, 2012 6:33 PM Flag

      A couple of weeks ago I noticed on Big Charts VNR showed a PE of 80 something. It caught my attention because I don't buy stocks with a PE above 30 and I bought VNR 5 months ago. I now see Big Charts is showing the PE at 150. I don't know if the current plunge is related, I see in the past it frequently takes sharp dips, but it makes me nervous.

    • The other replies are ridiculous, VNR management has performed exceptionally well, hit a couple major home runs since the crash. There is a difference with LINE, and that's size, it makes VNR more volatile.

      As to why the MLP's have re-priced downward, it's a mystery to me. Nothing radical has happened in rates or energy prices (not that it maters that much to well-hedged MLP's like these). The general market malaise should not affect these things, yet they're down 10% or more. But it happens anyway, why there's selling pressure on long-term cash flow vehicles like these probably does not result from retail holders, but funds and traders.

      If you're holding for cash flow, hold your nose and turn the page. If you have cash on the shelf . . . start edging in. Down around $25-26 has been a buying opportunity over the past couple of years. But it's still in its "normal" range these days, it would have to drop into the low $20's for it to be exceptional.

    • I think the market is trying to tell us this is not a Linn Energy, Kinder or Enbridge et al. If this were truly viable in its corporate philosphy and the dividend were stable, the stock value would relfect this IMO. You can earn 7+% on a LINE, KMP and many other substantial MLP's. Why bet your principal on a 8% shakey idea? Just because it's a monthly payer doesn't mean much. GLTA.

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