=====if semple selling im selling.
thats my thinking.======
I don't think semple is selling. I think he is repositioning MWE and the MWE growth that goes with it ---for the long haul that he now know's couldn't be done on its own. It appears he picked MPC and MPLX because they were big enough to take MWE on the next leg of the journey while they were small enough to make MWE be an important part of MPC's growth going forward.
This transaction guarantees MWE unitholders that want to continue cranking out even larger growth of distributions going forward the ability to do so. We also have a newGP (MPC) that will probably grow even faster than MPLX or MWE. Their disclosure of a 28% dividend increase today ( Before any input from MWE) leads me to believe MPC will be a huge growth vehicle going forward, probably even more than MPLX.
I see MPLX as a growth vehicle for MWE long term money currently tied up in a taxable account due to a low or zero adjusted cost basis.
For new money (the $3.37 cash or equivalent) or other could be used to buy MPC in a tax advantaged account because it looks like they will be tossing off increasing chunks of money in years going forward
Good luck to you dreiser. Its been a pleasure chatting with you from time to time.
Phil: i use TD ameritrade and have never had a problem with the discount. It usually takes an extra day or more(up to a week once) but it keeps coming regularly
The June 2015 payment was at $10.0795--July 2015 payment was at $9.6425.
In a conversation with TD some months ago they explained how it works. DNP sends the discounted shares (up to 3 decimals) to TD and when TD receives them they are credited to my account exactly as they received them. (WITH NO FEES)
I would suggest you call your broker --Speak to the dividend dept (or whatever they call themselves) and explain what you want and are entitled to. It might take more than one call because few companies give these discounts and some brokers might find it easier to pocket the discount money themselves.
It is no mystery as to how or what the discount should be per share.
The payment made in july went X-Div on June 26 and was payable on July 10,2015
The closing share price on July 9 was $10.15--The closing NAV on July 9 was $8.97( This figure is available at about 6:30PM by checking XDNPX-----95% of $10.15=$9.6425 I received the discounted shares on July 13 , 3days later. It usually takes 2-3- or 4 days. Back in Jan the shares were credited on Jan 20 -Probably due to year end bookkeeping on the funds part.
The discount is up to 5% when the fund trades at a higher premium to NAV otherwise the discount is down to NAV.
If your broker can't or wont accomodate you, you might have to switch brokers.
Hi Akebono:It was a pleasure meeting you also in NYC. I'm glad I was able to be of help in those dark days. the problem today is I believe many are/will be making a similar wrong decision with MWE at the present time. Frank Semple is setting MWE up for the next 25 to 50 years of massive growth and capital appreciation with this transaction. A lot more to come...Even more than up to now
Stay in touch....Best Regards
Semple won't control the distributions that MPLX pays BUT IF THE STRAY BELOW THE GUIDANCE the MPLX unit price will go lower and all even more important to MPC is they will now be receivinf IDR's from the MPLX-MWE combination so it would appear they would keep to the guidance to keep the unit price up plus they get distributions on the units they own PLUS THE BIG 50% IDR'S on all the MPLX units including all the units that they are handing out to the current MWE owners There will be a VERY BIG INCENTIVE to pay as much as possible, and if possible even a little more than guidance. If they shoretchange MPLX (and MWE inside MPLX) they will shortchange themselves even more and their stock will suffer.
Another important factor that you didn't mention is there will be less need for Joint ventures because MPC funding the growth going forward will permit MPLX (with MWE inside) and their Control of the NINE POINT ONE MILLION SQUARE ACRES OF DEDICATED ACREAGE TO MWE PROCESSING PLANTS IN THE MARCELLUS-UTICA-AND THE SOUTHWEST will be able to stay ahead of the customer producers for the next 25 to 50 years. They will also be able to do adventageous buyouts and buybacks of Joint ventures as they become available. This will further grow MPC-MPLX(with MWE inside)
. I tend to look at it as MWE is buying out MPLX and getting a premium for the MWE unitholders for doing so and getting a rich uncle at the same time.
The most important factor is MWE unitholders will 9% more units that in the not too distant future will be cranking out more income and doing it faster because it will be faster growing
Is it possible that this is a reverse merger that has not been discussed? Just trying to figure why Frank Semple would sell out with 25 to 50 years of growth staring him in the face in the Marcellus and the Utica in addition to the southwest and Appalachia and Michigan.
Is it possible that Frank realizes that he needs a lot more monetary to help to grow MWE to the next double or triple or from here? Lets assume for the moment that that is the case.
He would need a deep pocket helper. Not a big a deep pocket helper like XOM or those other really big guys but a small Big Guy. Someone like a MPC with a $30B market Cap that controls a $4.4 B MLP by the name of MPLX. Now the $4.4B MPLX buys out the $15B-$20B and the survivor MPLX with the exponentially growing MWE being supported by a small BIG GUY can grow the entire enterprise for many years to come creating growing income and growing capital appreciation going forward.
With oil and gas prices collapsing and MLP prices dropping Current MWE unitholders dodge the bullet of the many predators like the Kinder Morgans out there that will hand you a lot of money to give to the government and leave you with less income and no share of the future profits of MWE.
Lestah: Value Line is very positive on PKOH
They project earnings of $4.40 for 2015 up from $3.68 in 2014- thats a 19.56% increase.
They also project earnings for 2016 of $5.35 which would be a 21.59% increase over 2015
Their 2018-2020 (3 to 5 years) price projection is $70 to $105 per share.
Currently there are only 12.5 Million shares outstanding with a Market Cap of only $600M . Cash on hand as of 3/31/2015 was $46.7 Million.
Have you ever met and spoke with Frank Semple and the MWE Board of Directors, and Randy Nickerson and John Mollenkopf and Nancy Buese? Over the years I have met and spoken with all of them a number of times.
That's why I have invested my money in MWE for over 11 years and I am VERY GLAD I DID. We don't know the reasons for this merger at this time but if Frank Semple, the BOD and the rest of top management voted for it, it is good enough for me.
There is always humor in everything if you look for it.
In the recent past DNP has taken a large position (14% of Assets) in the MLP (Master Limited Partner) area as a diversification of the utility-energy area they target. The distributions (they are NOT DIVIDENDS) from MLP's are 100% ROC (Return of Capital) and are considered tax deferred. Basically you get the (ROC) money-spend it and/or reinvest it without taxes due each year. I am surprised the ROC tax deferral is so small and wish it would be higher. Much higher. The higher the better.
There was no rush last thursday when MWE closed at $57.98. Now 4 days later with MWE trading at about $68.25 which is about $11.25 higher there is still no rush. And the way I figure it the $11.25 capital appreciation in the past 3 days equals a little over 3 years worth of MWE distributions. But there is no rush for that either because that happens all the time-3 years distributions in 3 market days..
Trading is IMHO the hardest part of making substantial stock market "monetary" gains and not "inflated annual percentage gains" due to the short time frame of the trade.
====At this point, this is a #$%$ deal for MWE unitholders.====
The problem is investors don't invest for "AT THIS POINT" Gamblers gamble for "AT THIS POINT" Since I consider myself an investor , I invest for and are concerned for "The Point that is 2-3 or 5 years down the road"
Frank Semple knows a lot more than I do about MWE's business and the financing that would be required going forward to grow and protect the MWE unitholders (of which he is also a large holder) going forward.
Frank Semple is not stupid and if he and the management and Board of Directors voted for this deal as the best course of action for MWE's and unitholders future investment I also vote for the merger as the best course of action for the future based upon the information that Frank Semple and the BOD's know at this time.
If you are uncomfortable owning DNP for whatever reason you have found, then by all means DON'T INVEST IN DNP. I don't doubt your word or Morningstar's word--It's just that I have come to a different conclusion on the merits of DNP as an investment.
I sincerely wish you well with your investments.
I received the dripped shares today at the 5% discounted price of $9.6425 as expected.
Next event on the DNP calendar is the X-Div date of July 29.
Its an easy way to bulk up a portfolio for the future. Those that have the capability of reinvesting the dividends they keep giving you more and more shares that keep on cranking out money each month which get converted into additional shares at the up to 5% discount. The bulk of DNP's portfolio is in utilities which are legalized monopolies that provide the energy to heat-cool-and light up your home. And for the priviledge of receiving the energy they give you, you have the honor to send them a check each month that keeps getting higher and higher month by month.
DNP has been cranking out cash month after money for over 28 years without a hiccup.
Should be one of the safest investment in ones portfolio.
Yesterday July 9, 2015 DNP's closing price was 10.15. For those that are dripping the dividends into additional shares the 5% discounted share price should be $9.6425.
NAV up $0.20 today to $9.15. The share price premium is now down to +10.82% down from over +15% about 2 weeks ago.. Dividend is payable on Friday July 10 in cash or dripped at the discount sometime next week.
The magic bullet we are all looking for has not arrived yet. It appears that more and more people are starting to believe that it makes no difference if you cut the pizza into 6-8 or even 12 slices. In fact some people might even be thinking the total size of the pie is shrinking.
Successful managers running successful businesses do things in a timely manner for the benefit of the company. Self serving managers get distracted and end up hurting the company which in turn hurts themselves by missing the boat.