E&P = Exploration and Production. When the price of energy starts going down, it takes a lot of sectors with it , such as drilling, pipelines and so on. If you are interested in pipelines, go to the mlp board at investorvillage.com. No other board on the web comes close.
Did you ever hear the old saying about never try to catch a falling !@#!#@%@^@%$^%@^%!@#%#$!$
April 24 (Reuters) - Moody's revises Buckeye Partners LP outlook to negative from stable.
April 25 Citibank changes BPL price target from 56 to 53 - maintains sell rating.
A couple of months ago the analyst at Citi gave a sell rec. Some people on this board jumped all over the analyst and said how ignorant and dumb this analyst was; and how he didn't know anything. Yeah, well, he said to sell around 61 or so.
The reasons he gave was that BPL had high leverage and narrow distribution coverage.
I find it interesting that not one analyst has a buy rating on this company. There are 14 holds and 1 sell listed on Yahoo's analyst opinions link; but there is not one buy.
UBS has a target price of 33. At 33, that's a 12% decline from 37.50 and a yield of 5.3%. I think 33 is a more reasonable scenario than the present price.
Rudfox, thanks for replying. I have received other K-1's that have "Do Not Use" stamped on the front of the K-1 and referred me to a supplemental page that contained the correct information. So I assume the correct information is listed on EDP's supplemental page, along with the DEP,ETE, RGP and ETP. and that the only data I need to enter for EDP is the data contained on the supplemental page Thanks again.
I entered the figures for the EDPs K-1 boxes 1 thru 20. On the supplemental list of ETE, RGP etc. it lists EDP again. Do I list EDP a second time? This has me confused. Any help is appreciated. Thanks
BPL has two choices:
1. Earn more money.
2. Cut the distribution.
BPL's earnings are not covering it's distribution. Read Ferdiefor's post and read the Seeking Alpa article. That's why Citi gave a sell the other day.
When you payout more than you take in...duh. I own 500 shares and I'm going to ride it out. The current 7% distribution is not sustainable; and that is the problem. Most people who look at the numbers know there will be a distribution cut but they have no idea of how much it will be cut. The current 7% distribution rate is a pipedream.
The following was posted on Investors Village.
Re: NRGY announces dist. $0.705 flat again ...
While I am now long the stock, I don't want this to be seen as a pump.
NRGY current div is 2.82. They earned 68% in 2011, this includes a number of things including a freakishly hot winter so far.
That means they earned 1.91.
Lets call it 1.90.
they could drop the dividend to 1.60 to be safe and give a buffer, plus lets assume their earnings will be somewhat smaller going forward due to the spin-out (although they paid down a lot of debt with that cash)
At the current crazy drop price, the POST cut div in my scenario is a yield of over 9% nominally. The fed just told you rates aren't rising to 2015.
So NRGY has in front of it:
A) new projects coming online in the next two years that have already been started and are in various states of advancement, with some to be online soon.
b) All the bad news I can imagine already out (worst winter possible for them, terrible cost spreads, div cut, mass hatred, huge cuts in analyst ratings etc)
C) a continued super low rate environment which may give them refinancing abilities.
D) some kind of results from cost cutting initiative.
Why given this scenario above (which I think is reasonable but is in no way the final word) would I expect large further drops from here?
This is not a hostile "What you talking bout!?!" post, actually looking for thoughts.
FYI UBS thinks the dividend would be 1.80 "
I own WMB and I'm waiting for my spinoff shares. Scottrade said the shares will be posted to my account as soon as they receive them. Has anyone received their spinoff shares. Thanks in advance.
The following was link was posted on Investors Village by moneynomics. Let's hope it works out.
Barron's Take | THURSDAY, SEPTEMBER 29, 2011
Why Mosaic Can Grow Again
By TERESA RIVAS
Mosaic's products may fertilize farmland around the world, but its fiscal first quarter is only reaping disappointment from Wall Street.
After Wednesday's closing bell, Mosaic (ticker: MOS) reported earnings of $526 million, or $1.17 a share in the quarter ended Aug. 31, up from 67 cents a share in the year-ago period. Revenue rose 41%, to $3.08 billion.
The results were in-line with the phosphate and potash producer's preliminary forecast, issued last week, but short of a previous consensus of $1.27, which had not figured in higher costs that hurt the quarter. Mosaic also offered mixed guidance for the fiscal second quarter that seems to imply earnings per share of $1.50, a dime below the consensus estimate.
Shares fell 3.7% to $55 in morning trading, furthering Wednesday's after-hours decline, but the selloff might be overdone.
There was good news in the quarter that points to Mosaic's relative strength at a time when nearly every commodity-related company has taken a beating, outpacing the market's year-to-date losses in many cases.
Gross margins grew from 23.1% to 27.5%, as higher volumes and prices helped to offset the greater raw-materials costs: Sales of potash and phosphates were both up 40%, a combination of demand and sustained price increases.
Moreover, Credit Suisse analyst Elaine Yip noted that some of the higher costs in the quarter were nonrecurring items, related to temporary shutdowns. She wasn't as troubled by the lighter-than-anticipated forecast either, writing "the weak volume guidance may be tied to a shorter fall application window (compared to last year when the harvest started early), as well as earlier buying this year due to improved dealer sentiment that pulled shipments forward from the fiscal second quarter into the first quarter."
Thursday's Up and Down Wall Street column, "Dr. Copper Issues a Warning," argues that not all commodities are created equal, and that macro trends, especially in market-mover China, are much more favorable for "soft" commodities like crops than metals, a thesis that could see Mosaic rise in more rational trading.
Citigroup analyst P.J. Juvekar is also a longer-term bull on Mosaic and its prospects: "Our view regarding agriculture fundamentals remains favorable," he writes. "U.S. corn and soybean markets remain tight, grain prices remain elevated, and a 31% increase in farmer income this year will incentivize farmers to fertilize ahead of what may be a [robust] corn planting in 2012."
Mosaic's specific strengths also include its line specialty fertilizer, which the company sells for a premium, and its enviable strongholds in coveted emerging markets like China, India and Brazil.
These nations are seeing their populations skyrocket, while arable land shrinks—a combination that forces each acre to be more productive and creates a bullish scenario for Mosaic's crop nutrients, a thesis explored in Barrons.com this summer. (See Weekday Trader, "The Sun Shines on Mosaic," Aug. 26.)
Although the stock has sold off in sympathy with commodities since that call, these fundamental strengths should mean that it doesn't lag the market for long. At less than 10 times trailing earnings, the stock seems too cheap, despite the obvious headwinds and an industry-lagging 8% long-term growth rate. The shares are also bolstered by double-digit profit and operating margins, plenty of free cash, a 24% return on equity and a 0.3% yield.
So while Mosaic may need time to shake off generally bearish conditions for commodities, it has plenty of room to grow.
Well there is only one distribution left in 2011, so you are saying the next distribution will be 4-6% higher."
A couple of months ago I went to PNG's website and read that they committed to either $1.45 or $1.47 distribution (I forget which) by the end of 2011. We should know in a few weeks.
It's easy to sign-up for student loans; but it is easier, still, to default on a student loan. All you have to do is walk away and stop making payments. And you say to yourself what can the government do to me? They can't get put me in jail and I don't have any money they can take. So what can the government do?
Well, for certain kinds of government loans, such as small business loans, farm and student loans, the government can deduct money from your Social Security check. You may owe the government $2500 today but that money gets compounded every year until you retire. Add to the owed money various fees and possibly collection agency fees and so on. It all gets compounded. Don't worry. The government has to give you at least $750 a month. You can google -student loans and social security - to verify this.