The trouble is that the preferred are so thinly traded that it is difficult to get a large enough position to be worthwhile. Only 1 or 2 hundred lots seem to trade and the spread is very large. Would like to buy a couple of thousand, but paying a full commission on each hundred share lot would kill you.
MWE would not have a cash flow problem if they just cut back on new projects. And the completed facilities would still produce a superior distribution to the MPLX deal. I don't have a lot of shares, but I voted no.
I don't follow your reasoning. Seems to me that tanking on low volume is a lot better than tanking on high volume which means that the institutions are dumping large amounts. Going down on decreased volume is what you always want to see since it indicates that selling is decelerating.
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.
Unfortunately, the discount to book value is because traders foresee that when rates rise the book value will fall.
Thus, the discount is an attempt to arrive at the true long term book value. Personally, I don't believe the book value will drop that much but obviously the market does.
When a company goes public, it sells only a portion of its outstanding stock. Usually, the majority of the stock is still owned by the original investors who are selling only a portion of their stock in the company. As a part of the public offering, the original stockholders agree that for a period of time after the initial public offering, they will not sell any more of their stock. This is so the stock priced is not reduced by the influx of a lot of new shares. This period is called the "lockup period" and denotes the period during which the shareholders have agreed not to sell any additional stock. The expiration of the "lockup period" means that the shareholders are once again able to sell and sometimes this means that a large amount of additional stock becomes available on the the market at one time, causing the stock price to be depressed because current supply exceeds current demand.