fly's fall seems to have slowed down. My real question is this a start of the big move down - we have seen it before or is this a pullback, So many good stocks to buy that have gone down like FLY. Not sure I will be putting my money back into FLY(for the 60% that I sold)
enjoyed your post. All good comments. KMI cut their divi and will use the divi to fund their growth over the next year or so. This is pulling the share price from the dumps. I believe that in the long run it will do well. ETP has enough from previous sales to fund their reduced growth. As their projects come on line their divi should be safe which is all I am looking for in the next couple years.
I now have fewer shares then I have in many years. Of course after selling a bunch today - within 15 minutes stock took off. I was selling into this rally all afternoon, Either we are not done with the correction or we end up in a major slowdown even if it isn't a classic recession. Either way - I have raised cash - and am in a lot of divi shares - which FLY no longer is.
Is there any real knowledge below that simplistic statement. The problem for most of the MLP's is that they can't sell equity to fund their expansion plans which limits their growth eroding their share prices that was based on growth. The companies that use the pipelines need the pipelines to get their product to market. In reorganization they will have to continue the relationship and I doubt they will be successful in renegotiating the tariff. Their are other ways to fund growth. The latest that is a possibility for funding is convertible bonds to get low cost funding.
if and it is a big if ete goes bk - in the reorganization someone gets the etp interest - so someone still has the ownership. The full relationship I hate to admit I am hazy. Especially the dropdowns.
My thoughts exactly. I own a lot more etp then WMB but can see the deal going through. WMB's assets are valuable - especially combined with ETP assets.
I don't agree about David Faber. Over time he has shown far reaching connections to get the story or lack of story. Just because you don't agree with him it is not responsible.
ken - you are correct - bk is not even close on the horizon. Their growth is suspect with the divi in place - but their are many financing options including convertible bods which cuts into their growth however they are no longer priced for growth.
" Most of the breakup penalties are levied against WMB" that is not how I read it. It is ETE paying the 500 mil if they back out. I agree that we need more direction from the management telling us clearly what is going on - even if it is just reiteration.