Fear brings two choices for everyone.
1) The fear of loss of money and running for the exit in the hope of reaching the exit before others and getting trampled
2) Keeping your wits about you, and figuring out how to adapt to the situation and make money out of the
fear of others.
Everyone has the opportunity to make that choice. The successful investors are the ones who make the right decisions while the poor investors will always talk about how bad their stocks were while never mentioning the poor decisions they made at critical times.
A split does not add value to an investor's position. Would you rather have a $1.00 Bull or Two Half Dollars?
The price is what you pay. The value is what you get-----Warren Buffett said that many years ago. He never split his Berkshire Hathaway stock for the past 50 years. Now it's trading for over $200,000 a share.
I have no inside knowledge, but I'll bet you a Diet Coke that they have been selling units for a week or two and are stepping up the money raising as the price increases.
Frank and Nancy didn't get MWE to where it is now by waiting for us to think about the opportune time to do anything. They know the markets and what they need.
We, as unitholders, are just tourists along for the ride,
Not necessarily. Frank Semple and Nancy Beuse never wait for the last minute. They probably have been selling units into the market for a week or two. They have been doing it for a few years and They are pretty good at this stuff. They recently announced 4 new processing plants for Rex, and we don't know what has not been announced yet. Frank says the Marcellus is a once in a lifetime opportunity and he doesn't want to miss it. He and John Fox need the critical mass of growth to fight off predators like Richard Kinder if he comes knocking on the door. The more MWE is worth the better deal he can make somewhere else that would be more tax friendly for MWE unitholders than dealing with Richard Kinder if it is necessary. Don't think that Frank Semple doesn't know the sharks are circling in the water and has made plans to combat unwelcome visitors knocking on his door in the middle of the night.
Patience. A lot more chapters to be written in this book before Frank and John are finished
They are too young to retire and too old to start all over. They also wouldn't be good employees working under someone elses orders after all these years of being the general in the battle.. And if that wasn't enough reasons, I'm sure they aren't interested in paying a lot of taxes and buying treasury bills with the balance to live on while they play checkers in the park on sunny warm days.
The unit price is only important, when one is interested in selling. If not selling, then price is immaterial. If one sells, it opens you to transaction friction costs which include commissions and Fed and State taxes to reduce your capital. Another even more important friction cost is the loss of the mostly tax deferred income, and the necessity to reinvest the net amount after taxes in other tax deferred investments to replace the missing income. That's not always possible if the friction costs are high.
A stable price allows a drip plan to multiply your mostly tax deferred position without adding additional cash. At the current $30 price a drop to $26 would give you an additional 13.33% increase in additional units coming in on a drip plan and they all will be grinding out additional income into additional units as long as the price remains depressed. When you need money somewhere down the road,, you stop the drip and you will have a whole lot more money coming in each month that now. A lot less drama and trauma then selling and paying transaction friction costs and worrying if the price will go up to $36 or down to $26.
The only thing you lose at a $26 price as opposed to a $36 price is bragging rights at a cocktail party.
=====There's nothing about this company that will power it PPS back over 40 bucks,====
$40 is just a goal. The number really is not that important. What's important is all numbers higher than where it is now. $20 is better than $15- $25 is even better than $20- and so on up the numbers ladder to $40 or more. Since I have already removed all my money plus a mid 6 figure profit from ACAS and I currently hold a bunch more with a $4.70 cost basis and no desire to sell, all I really want is stability and if possible a dividend down the road, but it isn't really necessary as my wife and I are currently living on about 43% of our dividends and distributions that we receive. And that is after Fed and State taxes and gifts to family. We have no debt. The about 57% of our market income not spent is being re-invested in drip plans. We are retired over 11 years.
You might be micromanaging too much here.
PSEC lends and invests in sub-prime companies. If they weren't sub-prime they could go to a real bank and pay a little less. This is what PSEC does and that's what you bought when you bought PSEC. With sub-prime lending you should expect a bump in the road every so often. When one occurs, it is time to jump in and buy cheap shares when Mr Market offers them to you.
PSEC is not going broke. Those that understand will prosper. Those that don't will lose out.
Since I'm not planning on selling, a tax-free exchange is fine with me as long as the buying company is offering a stock that is worthwhile owning and pays a dividend that is sustainable going forward.
In conjunction with additional processing and fractionation infrastructure, MarkWest continues to develop its rich-gas gathering system throughout Butler County and surrounding areas in order to support the growth of its producer customers’ production.
“Our expansion of the Keystone complex is very strategic to producer activity in Beaver, Butler and surrounding counties and we are very excited to continue building our strong relationship with Rex and begin supporting EdgeMarc,” stated Frank Semple, Chairman, President, and Chief Executive Officer of MarkWest. “Since our acquisition of the Keystone assets over two years ago, volumes continue to increase significantly and we are leading the development of full-service midstream services in the highly prospective rich-gas areas of the northwest Marcellus.”
More expansion-More Business-More new customer producers-More Growth-More DCF-More increasing distributions-Larger footprint-More companies putting their futures in MWE's hands-More higher distributions coming--More patience required
Good luck to those coming along for the ride
Following through on their "Once in a Generation Opportunity" MWE has announced the following Today---
MarkWest Energy Partners, L.P. (MWE) (“MarkWest” or “the Partnership”) announced today a major expansion of midstream infrastructure at its Keystone complex in Butler County, Pennsylvania, to support growing rich-gas production from the Marcellus Shale and Upper Devonian formations. The expansion will be supported by new agreements with Rex Energy Corporation (REXX) (“Rex Energy”) and EdgeMarc Energy (“EM Energy”). As part of these agreements, MarkWest will construct Bluestone III and IV, both of which are 200 million cubic feet per day (MMcf/d) plants that are expected to begin operations during the fourth quarter of 2015 and the second quarter of 2016, respectively. In addition, the Partnership will construct 40,000 barrels per day (Bbl/d) of additional de-ethanization capacity and over 20,000 Bbl/d of additional propane and heavier NGL fractionation capacity.
The Keystone complex currently consists of the Bluestone processing and fractionation complex and the Sarsen processing facility which combined currently provide 210 MMcf/d of processing capacity and 26,500 Bbl/d of fractionation capacity. The Keystone complex is anchored by Rex Energy and in May 2014, MarkWest began operations of the 120 MMcf/d Bluestone II plant and 10,000 Bbl/d each of ethane and propane plus fractionation capacity to continue supporting Rex Energy’s growing rich-gas production. In addition to the new Bluestone processing and fractionation plants, the Partnership completed a 32 mile purity ethane pipeline connecting the Bluestone facility to Sunoco’s Mariner West pipeline project..
I agree with you. Selling out, even at a healthy premium always gives me a bad taste in my mouth. We suffered through the past six years and looked for the comeback to make the real score. I look at our profits from the bottom in 2009 and look to the possibility in time to get back to the $40 to $50 price it sold at, and I see a lot of money left on the table from the current $15 + buyout premium to the $40-$50 range. I want that for me. I took the risks down at the sub $1 level..
$15 + a premium is leaving a lot on the table for the buyer and giving me a BIG TAX HEADACHE.
I would prefer letting Malon and the boys work it out and give me some cash dividends and keep the party going until $40 -$50 when we can re-evaluate the situation again.
I definitly don't want a cash sale and a big tax bill after all I went through here.
Your short history lesson gives me thoughts of a future scenario.
1) The projected population growth from 7 B to 9 B over the n ext 15-20 years and all the additional energy needs that will be needed to provide their food-clothing and shelter going forward.
2) Growth in technology going forward will permit the energy producers to be more efficient and get more product out of each well faster and cheaper and probably for longer periods of time.
3) Winters are getting colder-Summers are getting hotter-Cars will be turning to cheaper Nat gas for fuel-More people-More cars- More food needed- More clothing needed-More housing needed-More Roads needed More infrastructure. More everything that will require energy.
The dawn of the cheap shale gas era will lead the US to greater prosperity, more jobs and more wealth going forward for those that are paying attention.
1. It trades at a premium to NAV- In its 27 year history of paying steady monthly dividends it has mostly traded above NAV. Lately it has been at a 2% to 5% premium which is on the low end. Years ago it traded at 40% or even higher premium to NAV
2. It is not MOST it is some and it is from their investing in MLP's which are partnerships and the distributions from MLP's are "Tax deferred ROC."
3. I don't know what UNII is, so I don't know if it is bad or not.
"Price is what you pay. Value is what you get"---Warren Buffett
Value for Infrastructure going forward will expand exponentially. The energy expansion throughout the US and the world is in its infancy. The 7 Billion people on the planet are preparing for the estimated 9 Billion people that will be here in the next 15-20 years.
A lot of EVERYTHING WILL BE NEEDED and a lot of those needs will be filled by the continuing growth of the Natural gas industry and the infrastructure builders like MWE, ETE and others.
The drip price I paid was $10.905. I'm satisfied, the shares were held in 5 accounts so I also saved 5 commissions @ $7.00 each for a $35 saving. and the shares are in place to receive the next dividend that will go X-Dividend this coming Wednesday. While a lot of people try to time their purchases and run the risk of being wrong and missing out and at the same time run up "Transaction Friction Costs" and taxes (Fed and State) on timing sales, I just take what they give me at the least cost and effort to me.
No they are all in IRa's and ROTH's. No problems with cost basis. Roth -no taxes until they change the law like they did on SS. The IRA's have no cost basis . It's taxed as regular income when I have to take the RMD's every year. I came too early for the ROTH's so most is in IRA's with little in ROTH's. I use the taxable accounts mostly for securities that pay mostly tax deferred distributions.