Has anyone added significantly here in Q4 2013? Last times BWP was at this level (coincidentally, just prior Q4 2011, and during Q4 2012). Given the sharp drop (-20% down from $31.75 as of 10/22 to under $25 in less than 60 days), and the traded volumes at the heaviest drop days, might have shaken out 99% of the most nervous holders.(?)
I am tempted to add 'significantly'.
"The oil and gas markets are reacting to Iran coming back into the market."
Tic, tic, tic...
The incompetence and naivety of the dynamic duo Kerry / Obama is weapons-class stunning, to say the least.
What will be the reaction when Israel / Netanyahu hit their point of no return, and they do "whatever it takes" to make sure Iran doesn't get the tool that they have publicly declared they will use to "wipe Israel off the face of the map"?
Israel won't, they CAN'T, 'wait and see' how serious things might get, should the irrational imams of Iran get the tool. Israel will not, CANNOT, afford to take the first hit; when they see the need to act, stand clear. They're in a poker game where they cannot bluff. They have their targets designated, the weapons they will use, the whole Op Order is written out. In detail. Gives a whole new meaning to their mantra of 'never again'. N'est-ce pas?
When they do hit, it's gonna be into the biggest fan going.
Tic, tic, tic...
So, if there ARE no cuts coming, and no clear reason for the large drop, and volumes were relatively light, then we're looking at BWP, yield of $2.12 / annualized, moving to a yield of 8.2%. Not bad. Should attract folks looking for better than 1% on cash in deposits. So, time to add, right?
We already have a fair amount, or I'd move to add myself.
liza: "Pretty clearly the answer is no because they haven't been able to increase the distribution for a couple of years.message"
Increasing dist $'s are always a welcome event, as would be an increase in the underlying $ per unit (share). But for me, being in an issue such as BWP, the PRIMARY concerns are:
1. How likely is it that catastrophic event(s) will occur to cause the unit price to decrease significantly?
2. Ditto, reduction of the distribution yield?
In the current economic environment of ~~0.01% CD's, Obama Care, and looking at 38 more long grueling months with our Clown in Chief, the safety of the principle and the assurance of the yield far outweigh looking for div and unit price growth.
warren w: "the only thing I can think of. If it wasn't for this, BPT would be paying 30-40% a year!"
Your extrapolations are too static... if the distribution dollars were higher, the price per share (unit) would ALSO be commensurately higher... keeping the yield % within the realm of the real world...
A 30% yield would definitely (at least SHOULD be) a red flag for the thought processes... "How come so high??? MUCH greater risk, right?"
And makes the new basis here $24.46...as I said before, if only the rest of the port were doing nearly as well....
(Have held BPT exactly seven years with this payout...)