This was an easy call for me. I voted no.
I've been an investor for over 40 years now, and this may be the first "no" vote I've ever cast.
Trading half our distribution (the main reason many folks decided to invest in MWE), AND the IDR's, is simply too big a price to pay for what MPC/MPLX provides.
I just finished reading the 250+ page merger proposal, and am now more convinced than ever that management has sold the unitholders out. They get to keep their jobs, and keep their residences in Denver. They get retention bonuses. Who knows what else they get.
And just look at the insider sales that took place in July, 2014; about a half million shares at $15+/share, the proceeds of which were nearly $8 million. SP nosedived immediately afterward, and there have been no insider buys now that we're in the $2-3 range.
I bailed around 6 bucks. There ought to be an investigation.
If this company is such a great deal, how come the insiders aren't in there buying with both hands?
I no longer hold CEQP, but do check in from time to time.
Whatever it is, Mr. Market hates this thing lately.
Something just tells me I'll be kicking myself a year from now for not buying alI I could afford at these levels.
This board just allowed billions of dollars of shareholder value on the table. Malpractice. I'm not happy.
Good move. Deal didn't make sense at those numbers. From this morning's price action on both MON and SYT, it looks like Mr. Market agrees.
This board had just left billions of dollars of shareholder money on the table. Malpractice.
I've never owned this company, but have been casually following it for many years.
It seems like it's just a stock that Mr. Market can't stand. It gets crushed with the least bit of mildly negative news, and doesn't seem to run up much with really good news.
Now, if you can believe the yahoo finance page estimates, in spite of analysts forecasting a 16.9% annual eps growth rate over the next five years, CY now trades at paltry 9.6X 2016 earnings.
I've stayed away from CY because I usually presume that Mr. Market knows more than I do.
Are its future business prospects perpetually shaky? Do they have a history of abusing shareholders that I cannot see? Is there something wrong with management? Or what? I'm genuinely curious.
Cosign you both. I hate my money so much that I'm hanging onto MWE out of spite for the sheer satisfaction of voting NO.
I noticed that you left the fact that MWE unitholders will see their distributions cut in half out of your analysis.
And that MWE unitholders will forfeit the IDR's they paid so dearly for.
No amount of lipstick makes this anything other than a pig.
julietsjourney is on the money.
marjun, you are hardly to blame for your misunderstanding. The sloppy, lazy reporting on this transaction has been unreal. Two weeks after it was announced, many of these reporter clowns were still describing it as a $78 deal.
There is market demand for electricity. There is NO market demand for wind power. It only exists because of government interference with the marketplace. If you want to go long on Al Gore's fascism, invest in wind power.
In other words, green energy relies upon a fascist economic system. In a market economy, green energy is mostly a failure, as fossil fuels provide dramatically greater energy density. Economies whose governments mandate green energy will endure higher real energy costs, malinvestment, and will most certainly experience lower rates of economic growth than those that utilize fossil fuels, Fossil fuels will continue to be most heavily used by the economies that will be growing the fastest.