I am thinking the same. I Am one of those scratching for a living on yields, and theses were good, but who needs the stress?
Why didn't they call the preferreds a long time ago?
My recent experience is, you always get these assurances right up to the second they chop you off.
It's happened to me in drillers, pipelines, tankers, majors - you name it and from people trusted like frederiksen and now nmm.
Seems to be standard practice - total confidence in the div for n years right up until they chop you off. I've been through this half a dozen times but this time I got out a while back. Scratching for yield. I was big in all the oils stocks, drillers, pipelines, tankers, majors and one by one they all did this kind of thing. I should own up and settle for 5% fixed one time.
Yes. It is tantalizing. But the major players whose trades determine the current price of these preferreds know what they are doing, i have to assume. I made one of my very few winning moves buying some Barclays Bank prefs at half price during the crash, but it was reasonable to expect the government to bail them out, so maybe they don't know.
Yes. I look a t NASDAQ, Reuters, FT etc which are a bit more current. I believe cplp currently pays 0.14 /qtr equivalent to approx 5%.
I dumped all these smaller energy plays - too late of course, but already they have collapsed further.
In case of drillers they continued another - 50% down so I console myself I could have lost even more.
I probably should have dumped Shell also but my man talked me out of it.
Now I just need you to call the bottom so I can get them back.
They may take the opportunity to cut the dividend 50% and there will be a better entry.
That would bring it into line with the past.
Maintaining 20% does not seem to be what they do.
My concern is they may take the opportunity to reduce the dividend to something more in line with earnings.This would result in a further fall and a buying opportunity. As of now, I am not so sure.
Yes. 11 of the 13 analysts had a buy on Enron right to the end. What more do you need to know? Same applied to a couple of tankers i used to own. Trust no one. Public spokesmen care about the effect of their words - not the truth of their words
The dividend is too high at the new pps. They always reduce the dividend to produce a typical dividend as a % of the new pps. Therefore they will cut at least 50% and a further drop will occur in the share price. Everything will then remain stable but dead for several years.
Check what happened to the TK shipping companies today. Dividends slashed and shares lost half their value.
UBS had a buy on this at $20 and on down to here, but I've never made a cent following their ideas. Th eonly things I have that still look good and have the dividends ar british utilities.
Ain't capitalism grand? While monster oil producing nations play beggar thy neighbor, in the process they beggar retired folk trying to eke out a living on dividends. And why are retired folk doing that? Because another bunch of a'holes killed fixed ineterest and safe returns.
I still have 5 or six energy stocks and shippers and none of them can really support the dividends at this point. All of them are rated buys at UBS but they only renew their analysis every year or two and don't know how to spell 'sell' anyway.
i don't know wether to sell them at around 50% loss or not and, unfortunately, no one else knows either.