MrWright: I don't believe Britain will sink below the water like Atlantis did many years ago. I believe the people of GB will need electricity and heat and air conditioning going forward just as they have done before. They are not going back to the stone age. The majority of the contracts EVA has is denominated in US Dollars and they are with Britain and not the EU
Scott: The time to buy is when most others are fearful. $1000 will buy you 45 units at current prices. That's $91.80 at the current level of payments.. The last quarterly payment was $0.51 and managment has guided that they will pay AT LEAST $2.10 for 2016. They even gave us a roadmap. To pay AT LEAST $2.10--That means they expect to pay
1) May 2016 $0.51 ( 1st quarter Already paid)
2) Aug 2016 $0.52 (2nd quarter)
3) Nov 2016 $0.53 (3rd quarter)
4) Feb 2017 $0.54 (4th quarter)
My expectation for EVA to reach their guidance for 2016
Total $2.10 for 2016 EXACTLY WHAT THEY GUIDED EARLIER THIS YEAR.
Now you can judge if they can produce the numbers they claim, or not, or do better.
I've been adding recently
Leggendd: Make your own decision. Buy if you like ETE-Sell if you don't. A year from now you will know if you did the right thing or not.
A lot of money can be made when it works out. I had it happen in 13 years with MWE and am looking forward to ETE to do it again.
Nobody could predict these events. The way to succeed is to buy a few more when the opportunity presents itself. It doesn't have to be a lot- Maybe 40 or 75 units. When it recovers you will have a few extra units and divvies and it will be a positive experience.
Fear creates opportunity (John Templeton)
It probably is time to go through your entire portfolio and decide which of the stocks you own will definitely be survivors and which you aren't sure of surviving. You might decide that one of your stocks you would better off selling and taking a loss to re-deploy the funds to the stock you own that you believe has the best opportunity to thrive going forward. Also remember statistically 40% of all market gains are made by receiving income. It is easier to evaluate income than capital gains. Upgrading a portfolio to income producers from non-income securies will help you move in the right direction. You need to make progress to get in a positive approach. At current prices ($18.33) $250 will buy you 7 additional WNR shares to get you started ($500 buys you 14 shares) Using a discount broker with low comishions it is a doable approach 14 shares will give you $532 income per quarter and clean up a small piece of tour unproductive portfolio. Little steps will take you a long way if you keep at it. If you are able to drip the dividends it will grow even faster
That's the brokerage houses nonsense where they are trying to suck commissions out of you by scaring you into trading. They make commissions the IRS takes a big chunk of the profits, you give up the future income from that investment and you then have to duplicate what you already have except you have less money due to the taxes paid and you lose the opportunity to possibly make a Million because you are trying to protect a few thousand dollars. I don't mean to belittle a profit, but I do mean don't blow the opportunity you have in ETE. I assume you are comparatively new here and are not aware of the earning power and potential growth potential that ETE has. I'm expecting ETE to be a $1 M capital gains winner for me in the next 2 to 4 years and thats not including mostly tax deferred distributions received along the way. And if that happens the ETE price will only have matched its previous approximate $35 price. The interesting thing about ETE is if I'm wrong and it only reaches $20 or $25 it will be still cranking out growing distributions every 3 months and at the lower prices I will be able to add additional units for additional mostly tax deferred income at a lower cost per income dollar spent. Bad things can happen if you leave too many coins on the table by taking your profits too early and watching someone else make the profits with the stock you sold him.
Think before you click the mouse.
I don't understand what you meant by the last sentence you said----
Pigs get fat but hogs get slaughtered, as they say.
The short answer is-I don't know. The reason I don't know is because I don't own MLP's in a tax sheltered account. The reason I don't is because MLP's are a tax shelter investment with many tax benefits to the owner if held in a taxable account. Many of these benefits are lost in a tax sheltered account . i guess it's something like "Two negatives make a positive" I believe an MLP investment in a tax sheltered account is wrong so I don't do it. I don't track UBTI because I don't need to in a taxable account. I can tell you again each year the UBTI numbers will be different and in addition they will be different for each investor each year.
I live entirely off the market. I have been retired for 13 years. I have no pension plan. My investment objective is to maximize income and the more I can keep by legally deferring taxes the better I like it. One important way I can legally defer taxes is by using tax shelters properly. If I were you, I would read an MLP primer that you could find on Google, and read it
So, I have given you the long and short answers. I hope it helps.
UBTI is not applicable if you hold the units in a taxable account. In a tax sheltered account every unitholder is different and each year is different from other years for each unitholder. You also lose other tax benefits of owning an MLP in a tax sheltered account because MLP's are a tax sheltered investment. The MLP's I own are in taxable accounts for that reason.
Doc: If you believe the ARCC price will be up to $20 in a few months (as I do) , It might be wise not to be concerned if the price rises up a Dollar or so by June 30 (Dividend pay day.) and just pay the price that it is on the pay date. Getting stubborn over pocket change might cost you bucks later because you might never buy it as it rises into the future, leaving you waiting for the dip that might never come.
The PR says 4M shares and HASI will receive $82M --That's $20.50 per share. Then the mention "less expenses" So you are right-they aren't too clear. Try calling Investor relations. The number probably is in the PR or web-site. I'm on the way out and don't have the time now.
Please post any info you can get. Thanks
The HASI business model is that they pay out virtually all their income. And the bulk of that dividend (77% in 2015 was tax deferred) This past December HASI raised the dividend about 15%. It is expected that this coming December they will again raise the dividend about 15%.
Since they pay out virtually all the money they make, they have to either sell more stock or issue debt to get capital to grow their business. That is their business plan. I look at a stock issuance, as a positive growth factor. As long as they issue stock and grow the dividend that is a positive move IMHO.
I believe that HASI has a winning business plan in the coming decade. Since I plan to hold for a long time as long as they stick to the growth pattern they have since going public, I have been adding shares and dripping the dividends and growing my investment as the company is growing. There will probably be a dip in price due to the stock offering and I expect to be a buyer on the dip. I try to take advantage of opportunities when they are offered.
HASI currently is a cornerstone of my portfolio Looking out 3 to 5 years, in a cooperating market, I expect the HASI price to be much higher that the current $21.15 level with a dividend of possibly $2.10 annually.
That depends on what you want from an investment in ARCC going forward. In my case--I'm interested in the income that I can get from my investment
The S & P pays about 2% annually That doesn't cover inflation in my real world. Capital gains would have to be used to cover inflation. That would require selling part of the investment and giving up the income from the portion sold and also incurring an additional tax burden due to the sale. The income from ARCC over the past 5 years has averaged about 10% per year and that does cover inflation (In my real world) over the past 5 years.
The risk, as you say, is what happens in the next 5 years. We don't know---So we just have to take in one day ata time and be alert and watchful going forward.
I've been looking at the beaten up refuners. WNR just started getting covered by VALUE LINE this week. So why do you feel that WNR is a better investment than HFC MPC PSX or others that VL covers? Or don't you?
Thanks for any feedback.
BDC: I am not interested in arbitrage at the present time. I am looking for a reasonable (in my mind) way to get out of ACAS (which I did today) and replacing the Income that I stopped getting when ACAS stopped paying dividends in 2009. I bought many 1000's of shares in the $0.65 to the sub $3.00 range. This was all done in my IRA's In 2009 ACAS paid a $1.07 dividend that was paid in cash or stock. I chose ALL STOCK and it was issued when ACAS was selling for about $2.14--So basically ACAS gave me one free share for every two I had previously bought between $0.65 up to below $3.00. There was a long time frame between the X-Div date and the pay date and when it was finally paid ACAS was trading at about $3.25 and never looked back NAV at the time was about $7 or $8. After the 2009 stock dividend management changed their attitude towards the shareholders and IMHO they really figured out that there was $Billions of Dollars that were there and INHO they wanted all of it for themselves. Personally I made a lot of money with ACAS through the bad years. But I don't like how management has treated the shareholders. So I sold my position and am in the process of converting it into ARCC shares. I sold now because I'm not sure this merger will go through any more than any of the other schemes they have come up with in the past few years that turned out to not happen. I will go back to collecting dividends and leave the arbitrage to those that are interested.