You will notice that often stocks that split go down a little or consolidate just afterwards. No fundamental reason, just that there is more stock available and it takes a while sometimes to absorb it.
I don't know what you mean. The preferred rate is fixed and this month it was the same as it was last month and the month before that and the month before that etc.
The problem with this MLP, as the market reaction to the IPO shows, it that its sponsor doesn't have a lot more facilities to drop down. I think it has just used the MLP to monetize its infrastructure like all these deals, and that there isn't lot more available to increase the MLP's cash flow. You can't compare this to SHLX and others with large parents to feed them.
I am not implying that anybody is a crook here. I just think they are so caught up in the process that they don't ever seeing it end. As long as this perpetuates itself everything is fine, but once financing dries up, the piper has to be paid.
One reason the cost is so high is because they produce so much salt water that has to be disposed of in an environmentally safe way. One of my friends who is a small operator says that the shale producers business model is not viable long term - as soon as they stop increasing reserves, no one will lend them the money to keep the process going.
The problem is not with reserves, but with the fact that it costs more to produce a barrel of oil from those reserves that they can sell it for.It is a ponzi scheme in that the wells deplete rapidly and so in order to increase reserves and production, you have to continually invest more and more money to develop more and more wells. If you ever stop the process, the truth becomes obvious and the crash begins.
I think AI is a solid company but the market has been saying otherwise recently. In these situations, the market is right more often than I am.
I suggest that you sell all your AI stock so that you can sleep easy. Maybe even conjure up something else to hate.
Seems that your political views are influencing your comments about an investment. I don't understand how investing in MBS securities constitutes socialism. Seems to me to be a capitalistic thing to do.
For the life of me, I cannot understand the price action of AI. It is one of the best mREITs around and the dividend appears safe. After the report of a GAAP loss, the price started declining. Even though, GAAP numbers mean nothing for an mREIT. I am still holding and feel confident that it will recover at some time. I am waiting for a bottom to buy more.