So as some of us that are investing in MLPs know, dividends and earnings are just around the corner.
For the ones I'm in:
PAA: Earnings 11/6, ex-dividend 11/2
CQP: earnings 11/5, ex-dividend (from history, likely 10/29)
LINE: earnings on 10/25, ex-dividend (from history, likely 11/2)
EPD: earnings 11/1, ex-dividend 10/31
For PAA and CQP earnings should be a non-factor for the ex-dividend lineup, but for EPD and LINE in particular there will certainly be an impact. With the nearly non-existent premium on LINE though, I plan on holding on to LINE through earnings, and I see us breaking through the 52 week after earnings. The stock performance for CQP in the past couple of days has been very promising, and I believe a dividend announcement will help us get to $23 this week.
Anyhow, what is everyone's strategy this week or next week for the MLPs? Also, BMY earnings are this week as well, 11/20 analysts rate this a hold into earnings (and we know that hold normally means sell on wall st), good to hold on to my puts or sell them right before earnings? As of now I plan to hold on to these as well.
I was asking myself a similar question recently (should I hold EPD past ex-div due to this current weakness, & given my calls have a Dec expiration).
The answer for me is that I won't totally rule out the possibility, especially if this week continues to melt down... But I would strongly prefer not to go past ex-div. It's not just the hit to share price (over 60c), but also that every extra day holding is one more day for the market to drop further as we get closer to the election and potential post-election & "fiscal cliff" sell-off. If EPD had a higher distribution percentage I'd feel a little safer too but I don't think high 4%'s is great protection for an MLP & its added paperwork hassles.
Kicking myself 2x over for not being more aggressive about selling off some EPD calls for a nice gain when it was approaching $55 last week, or even when hitting $54.50's. Some of the board members here got it right about selling all or part of their positions at those times..
I'll choose to look at this as a lesson/reminder on why not to get too greedy, maybe the pain will pay for itself with future trades.
It ain't over yet, but it sure ain't looking great right now.
This may be crazy talk, but I'm considering holding some of my DEC contracts past EX div. Is anyone even considering this? Any thoughts on how the election results may affect these MLP's?
I am considering rolling CQP into Mar 2013, I have Nov 22s, If I do it it will be after EX div, when the pps should be lower. That will give me a chance at another Div run, and it just might recover to B/E before then. I played ETP, PAA, and EPD as well and I should at least B/E or make a little on those trades. CQP remains my problem trade and I am open to any advice
That might be a good strategy.They could recover PPS in a few days and if Mitt gets in, turn green.I don't think they could do much worse than they are currently;they are being dragged down by the poor earnings of totally unrelated stocks.
I'm so very glad we made it through Monday w/o a big MLP sell-off like last Friday. I now sense forward momentum coming for EPD, ETP and PAA and especially for CQP who just announced. My exit strategy is to throw my chips in a day or two before Ex and put the MLPs behind me, and hopefully I can recover half of what I lost.
I think everybody's exit strategy is about the same, exit 1 or 2 days before XDIV , I still think these MLPS can be played successfully in a normal environment. This election is causing a different market reaction then most. One thing I would do different in the future is not take a position untill about 10 days before XDIV or maybe not even until the Div has been declared. Smaller upside potential, but much less downside potential. I,m still learning and open to any advice.
Same here jim, for me it's just about seeing how much my losses can be mitigated before exiting the positions now. Then on towards finding a way to earn some of the lost money back before end of year if possible.