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.
It's not as bad as you say. The $10.27 price is in addition to the $0.065 dividend wou will receive on July 10. That income can be used to spend or reinvested in additional shares at a 5% discount to increase you income next month and the months following If you are investing-You should be investing for the future. If you are gambling for the shortterm, the nearest casino will suit you better, I am sure.
I didn't have a problem. My broker is TD Ameritrade. It takes a few days (2 to 6) to have the shares credited to my accounts. I was told the shares are received by them from DNP and are then credited to my accounts exactly as should be to 3 decimal points. The discount is 5% if the price is more than 5% above NAV and down to NAV if it is trading at a premium of less than 5%.
Never had a problem.
RWB: Thats because people are programmed to micro-manage their investments.
The more they manage, the more they think they know and the more they have to worry about.
-----Here are simple facts that requires action by anyone on the fence regarding DNP today
Does that person want steady income (with a 28+year history of monthly payments without ever wavering) or not?
Does that person want a long term growing investment and is able to reinvest the dividends into additional shares?
Is that person tired of getting knocked around in the market and is willing to invest in something that has a 28+ year history of continuous payments without fail and has a manager that has been making it happen for the past 17+ years?
If that person decides DNP is for him (her) than today June 25, 2015 is the last day to buy DNP and be eligible to receive the next dividend payable on July 10, 2015.
If that person is able and wants to drip the dividends it should be set up with your broker today (after buying-before X-Div tomorrow) and make sure you will be enrolled in the 5% discount plan the company offers.
So decisions have to be made and things have to be done, if that person wants it to happen.
Do your own DD and make decisions.
I believe it is too early in the life cycle to be concerned with terminal value. If it wasn't, why is MWE building additional infrastructure at a $1.5B per annum basis that could extend for the next 5 to 10 years or maybe even longer. If you and I value MWE at $100 to $150 and a buyer comes forth at $150 in 2 or 3 years than we are conservative in out guesstimate because for a buyer to come forward with a bid they probably believe there is more value in the MWE franchise than we the owner believe it to be--If we sell. A buyer would only entertain an offer to buy if they believed it was worth at least 2 times what they were paying. Otherwise why would they buy?
Remember--We are talking about the largest Shale property in the US and it has a lock on the East Coast and New England plus export to Europe, Canada South America-The Gulf Coast. There will be at least one or more Crackers built and in time The Marcellus, The Utica-Rogersville and Whatever else is down there will provide inexpensive energy for the next 25 to 50 years.
It is way too early to cash in our chips. Whether we like or not this has become an inter-generational investment and it is time to educate our heirs as to what the value here is going forward
+++Any entity should be for sale for the best price++++
That brings up the Question--Best price for WHO-- The buyer? Management who has been compensating themselves as they have built the company--
---Or the current unitholders who have been waiting patiently quarter after quarter for the promised "pot of gold" at the end of the rainbow for years now.
According to Mr Semple's DCF guidance for the next 6 years we should have a distribution of $6.04 by Feb 2021 with the Feb 2021 distribution to be about $1.57 and a $6.28 annual run rate and growing about $0.04 to $0.05 or more per quarter. A unit price of $125 gives us a 5% yield at that time.
If we wait and MWE does what they say they can do, we would receive $28.28 in distributions and a price increase of $65 (to $125) a total of $98.98 per unit or 27.38% per year AND WE DON'T SELL ANYTHING ---WE WOULD STILL OWN MWE AND ALL OF THE NEXT 44 YEARS OF GROWTH.
I was taught to sell depreciating assets--Not assets at the beginning of the growth cycle.
IMHO your $150 unit price is ultra conservative and needs refiguring.
Hi Jacal: We all make bad decisions every so often. The trick is to make fewer smaller errors as time goes on. Some people just might not be able to invest in the market and shouldn't. Many people don't make realistic goals. This isn't taught in schools, so many just don't learn or know how to invest. Some people make a bad decisions and compound it by getting stubborn..
Try to find successful investors and respond to their post and ask for info.
For example look at the post Rwboehning just wrote a couple of hours ago on this board. I'd be willing to bet that he is sincere and would would tell you his 25 year history with DNP and his success with it..
He mentioned it, so I'm sure he would be willing to write to you if you are serious.
For the most part of their 28+ year history DNP has traded at a premium to NAV. I believe that is due to the perception of the DNP investors that DNP is a safe haven and they want to be here in times of crises. During the market meltdown on 2008-9 DNP's premium to NAV rose to about 40% or 45%.
Crazy? Yes except it was the perfect time to be buying and adding to your account and avoiding huge losses most people had with most other securities
BUT FOR THOSE THAT BOUGHT AND ADDED AND HELD DURING THOSE UNCERTAIN TIMES THEY RECEIVED THE MONTHLY DIVIDEND EVERY MONTH ON TIME AND WITHOUT ANY REDUCTION AS USUAL. FOR THOSE DRIPPING THE DIVVIES THEY RECEIVED HUGE INCREASES IN SHARES ADDED TO THEIR ACCOUNTS AS THE DIVIDEND YIELD ROSE ABOVE 20%.
The choice is yours buy or wait and try to time the market.
You will have to live with your decision, as I am doing with mine.
HOW MUCH IS THE COMPOUND DRIPPING OF THE DIVIDEND REALLY WORTH????
From the info I was able to accumulate from Yahoo I was able to piece together the following numbers to get an approximate amount that DNP delivered over the years.
DNP had their IPO in Jan(Feb) 1987 at $10 per share
100 shares bought at the IPO with all dividends dripped into additional shares AND NO SHARES PURCHASED the account wold today have approximately 1142 shares and be increasing over 7 shares per month from the drip.
Better than sitting in a money market account waiting for one of the many things one could wait for over the past 28+ years.
Anyone that had been investing in DNP on any kind of plan that fit their own circumstances could have built a retirement bonanza without the stresses and strains of "always waiting for something"
The current manager has been doing his job for over 17 years so and it appears the opportunity is still here to get on the DNP investment trail going forward.
Waiting for the fed move can be non productive due to the erosion of the value of money while waiting and the lost opportunity of time doing so Some people have been waiting for 10 years for a rate increase. Some people have been waiting to get back in the market since 2000-Some since 2008-9. Some never got back in after 1929. There is always something perceived to be bad to wait for, that will or won't happen. While we wait, we get older every day
When the Fed finally raises rates---Is that the time NOT to invest because it is time to wait for the second rate raise? Then the third raise? Waiting for the perfect time could be a long wait.
. If the share price hangs around this area until July 9 I will receive an extra few dripped shares at a lower price than I expected.
Patience today's prices will appear to be a typo error in a year of two.
Hi Akebono: And a Happy Fathers Day to you also. I like your way of thinking and believe you are being conservative.
Just read an article "Natural Gas Consultant Says Tapping Burket Shale Faces Challenges" It appears that "The Burket" is about 400 Feet above the Marcellus and is huge.
The writer interviewed Gregory Whitestone the owner of Ohio Township based Whitestone Energy Consulting
Writer: Is the Burket following geographic pattern as Marcellus?
Whitestone: The wet gas area of the Burket should closely mimic that of the Marcellus because it is.....only a little bit above the Marcellus.
Writer: But it still might get overlooked?
Whitestone: Its just because the Marcellus is just so big. I DON'T THINK PEOPLE REALIZE JUST HOW BIG THE MARCELLUS IS. THE MARCELLUS HAS COMPLETELY REVOLUTIONIZED ENERGY MARKETS AROUND THE WORLD AND WILL CONTINUE TO DO SO FOR A COUPLE OF DECADES
Thats a pretty powerful statement, so I capitalized it It is even more interesting to me that MWE is trading 25% off of last years high of $80 with the distribution continuing to increase every quarter as we go forward.
Akebono: I have been buying HASI since February as a green energy company for the next 20+ years. They are profitable pay a growing 5+% partially tax deferred dividend. Nice and small $693 M Market cap- About the same size as MWE when I started buying it 11 years ago. Plenty of room to grow. Do your own DD as HASI has been ramping up in price and keeps making new all time highs.
Once again Happy Fathers Day to you and all the other Fathers out there.
Hi Akebono: I was looking for more info as to the 2022 10B+ cuft/day processing figure.
Would appreciate any info you have
Hope all is well
HASI is still a small cap stock with a market cap of under $700M. There is plenty of room to grow to $2B or $3B or more in the next 2 to 4 years and be a game changer in one's life if they understand whats happening here and bulk up your position and the company doesn't do anything stupid. For over 30 years they have been making the right moves and now they are well positioned for the future. They are in the right business at the right time. Today's close of $21.31 is the highest close of all time. HASI was up over 3% on double the average daily volume.
Patience is the key word here.
Dividend to be paid on July 10 was previously announced and will go X-Dividend on June 26, 2015
All the 4 declared monthly dividends will be for $0.065 each as usual
I am planning to continue holding GAB for the long term. It is much easier just to sit back and have the dividends reinvested every quarter into additional shares without any effort on my part to try to time the market and pay commissions. By reinvesting the dividends it become a growing investment because the dividends are paid on the additional shares in addition to the older owned shares It is more efficient this way ---In My Opinion
Dripped shares credited to my account this morning at the discounted price of $10.0795.
Thats 5% off the closing price of $10.61 on June 9, 2015.
Next important event is X-Dividend date of June 26, 2015.
EdgeMarc is listed on Slide #26 of the June 3, 2015 Investor and Analyst Day Slide presentation as a customer of MarkWest on the Customer Satisfaction page