.....He indicated that there would not be an extrodinary tax hit to 2016 purchasers, relating to Capital gains on Sale Partnership. I told him I bought in 2016, before Partnering announcement, and he replied that I don't have to worry.
I am new to K-1 MLP investing, so I will wait for CC tomorrow for clarity.
I just spoke to IR today. I was told that this will be discussed in detail in tomorrows call. But the bottom line is that for 2016 purchasers there will be adequate offsets to the gains coming from the Con Ed sale.
Relative valuation puts this stock as the cheapest among it's peer group; some of whom trade at 6% yields ( HEP for example). CEQP is now in an enviable position with its balance sheet, Ebitda ratios, and it's customer base. It is likely to begin growing revenue next year also. Relative valuation puts this stock as the cheapest among it's peer group.
Natural Gas demand is much more price elastic that that of gasoline because most Electric Utilities have dual fuel installations, and spare capacity in the form of NG fired cogeneration units and NG fired peaker plants. Demand is being bolstered by EPA mandates too. Right now every Electric utility in the country is rapidly switching over to NG. Any plans for Nuclear and Fossil fired plants are dead in the water. So the domestic NG market is booming.
As such CEQP shares are likely to trend up toward the 9% yield area over the next few months based on strong business outlook. Perhaps there will be a tax discount in the price for a while,but that is likely to be erased immediately upon completion of the deal.
Those who wait until the deal closes are going to be left behind, like those who were waiting to hear about the dividend cut before buying.
This was a very wise deal for us. Paying down $1 billion in debt will save about $50 million in interest expense. The reduction in Ebitda in the S&T segment is also about $50 million. So as far as 2017 income goes this looks like it would be flat or up from 2015.
His article alerted me to this company. That is where the research began. Also significant open market purchases by inside investor.
...is that we finally get some CNBC coverage which lights up this rocket, and drives a wave of institutional momo buying. So yes, $20 still a realistic 2016 target we get some PR.
I have been in this one for years, and have suffered through dilution from 7m shares to now ~24m. Frankly I don't think they need this money, as they are cash flow positive with $15m in the bank. Regardless, the odds of a massive run up in share value have never been better.
In 5 weeks Q1 CC will occur, and with all the positive words in the Q4 CC, I am expecting a blowout!
You have no idea what you are talking about.
In cases where the company has a positive net worth and does not have to rely on outside "debtor in possession" financing to run its operations, the shareholders still maintain their investment holding in the company.
In this case the assets exceed the liabilities by $600mm.
A similar case was the American Airlines bankruptcy.
It just has not made it into mainstream media yet. However that may change any day now. John Grisham's new book "The Tumor" (published Jan 2016) brings to light the future of cancer treatment using "focused ultrasound. He believes this is a revolutionary breakthrough in how tumor wil be widely treated in the future.
In his narrative he refers to two companies receiving recent FDA approval. Of course this is EDAP and USHIFU.
The odds are good that Grisham will help bring this "news" to the masses through public appearances promoting his works. Who knows even Oprah could be a conduit.
Fortunately for us, EDAP is the only way for the public to own a piece of this pure play HIFI technology.
So again, I'd say that there is news.......
At this price range (2.3) the underlying value is too compelling and the upside $$ too large not to attract some hedge fund types. Such activity in the shares is likely to provide an upward bias.
this is the kind of sale I like!