You are really veering off my point of you making unfounded and illogical post and try to nick pick my response. But to say a 30% divvy cut is in the books and give no reason is somewhat impulsive or insane. Fortunately for you, I am always prepared to answer a questioning mind. Firstly, if you do not think that interest rates do not effect MLP' stock pps I strongly suggest you do some reading on that. Even the most fundamental thing like yield which is historically the basic underlying valuer of MLP's is a direct reflection on pps visa a vie current interest rates. With prime at 20% a 12% yielding MLP does not command as high a pps as when prime is at 10%. I am not going to attempt to address interest rates on their borrowing and other cost as I would need to write a book.
In any case let's attempt to address your most recent question which I think is; why did one go up and one falter? This is like trying to explain the difference between oranges and apples to one who does not know these stock but, again I will attempt to do so. I personally do not know exactly why one has gone up and one has gone down but from an operating prospective they both have very similar operating ratio's and margins. No advantage to either here. We can then look at shareholders, offerings, purchases and mergers. Clearly BBEP has an advantage in those area's. ARP has twice the % of institutional holders. 2/3rds. the volume, recent offering, and no prospective merger on the front burner. Maybe that has something to do with it.
Much will depend on weather. The movement-especially from oil to gas-has began in the commercial and utilities end of the business. Unfortunately, it will not happen overnight but, progress is being made. The more pipelines the better in this case as they-IMHO-are the backbone of this upcoming change.
Diddo Jack. Just read that Chinese Trading Giant-forgot the name-has recently rented several of the ULCC type super tankers just to store oil as world oil prices have dropped so much they can't afford to sell it.
Nice article on Seeking Alpha: "Awilco Drilling lost 30%; what to do next." Lays out all the potential problems facing Awilco and reviews then justly. Basic conclusion was; problems are overblown and this represents a Great buying opportunity. I know some of you hate SA but, many people-including myself-respect a well written or thought out piece. This may have helped our cause some.
arsesm, I appreciate that you are a reader. That is good. Please read other post beside yourself in the future so that you understand ARP and the MLP market a little better. Firstly, all MLP's have seen a decline over the last few months. Some have rebounded faster than others this week. Unfortunately, most are still under their pre sell-off pricing. There is nothing technically wrong with ARP but like all other MLP's its faces headwinds like interest volatility, occasional bad press, declining energy cost noise and an onerous GP agreement that hinders growth in distribution. Combine those with a thinly traded stock, sector money-flow and a high sustainable yield and you have ARP's pricing scenario.
Buster, Unfortunately, I tend to disagree with you about adding at these sub $19.50 prices. At $19.14 this is a pure steal if nothing else by based on it's yield. ARP is not a good short candidate as there are simply no catalysis for continued downward pricing pressure outside the fact that is so thinly traded. We saw this week it being hit with a double whammy of a possible interest increase and oil pricing falling out of bed. Still, all in all the stock held up fairly well. On the other hand I don't think we will see any price appreciation past the $21-22 range simply because of the current agreement with our GP.
It's one thing to pen an educated post. It is another thing to make totally unsupported and unfounded idiotic statements. I welcome you as a poster here but, please do some thought first as now you are branded as a dullard, which may or may not be true.
Wanted to buy more yesterday but, found that this stock does not permit margin. Should have known better but, I don't usually get involved with pink sheet stocks and forgot that fact. Still in the hole about $20k so I have a way's to go. Down but, not out.
Up $1.16, I would say that's good.... :-) More like "Thank God," finally some intelligent investors moving in or no one wanting to sell at those depressed prices of yesterday.
Drop is result of rumors surrounding upcoming Fed. meeting that they make break their promise not to raise rates until summer 2015. Also, increase in Mortgage rate to 4.24% and small uptick in 10 yr. note. I have not read the article noted here but, in general the mREIT's do well in troubled times.
arsesm, A little tip; you have to back such statements with some facts or rational reasoning. Otherwise educated posters will think you a boob and idiot.
Yep. Also an other article in Wall St. Journal saying good things. Yet we are getting the poop kicked out of us with all the other energy MLP's. Guess it only counts when they print something bad.
I agree with you but, unfortunately I already own 18k share at $19.90 The recent sell off in energy has left me out of powder but, I guess I will sell something and get another 2k. This price seems crazy low.
Folks, IMHO we are fighting a battle against things this company can not control and can not press forward if they continue. We have potential rising interest rates, stalled economies through the world-even China. Oil prices that are falling out of bed and a large natural gas stockpile. I am going to hold because of the nifty divvy but, this pps is begining to make me nervous.
Sorry Jack, but he lost my attention as soon as he used that typical liberal rant of " you are then a racist if you don't think like I do."
Unfortunately, everyone is focusing on negative reports for 2015 which may never happen. Good to see some positive info.
Crk, I do not disagree with your right to have an opinion but, IMHO you are a little out of touch with reality. If you believe all the conspiracy theory that you purport to be the case, why then are you in the market? The truth about hedge funds is that most go broke within 5 years as do mutual funds. Fortunately, it takes them a little longer. A recent study showed that there were about 1850 MFs in 1999. In 2009 there were 736 left of which 27 had beaten there group benchmark over that 10 year period of time. In any case, I digress so let me just wish you successful investing.