I buy when there is an opportunity to get good asset at a discount. The dividend paying stocks are being sold now by Mr. Market. This is when I want to accumulate dividend paying stocks. Already own MLPs, and now I am buying this REIT. I want to own high dividend paying stocks, that have a safe dividend. Companies that are mortgage reits, lease oil tankers or airplanes, or own assets that are declining in value are not in my comfort zone.
Building a portfolio of high safe dividend stocks rather then owning bonds is the best way to invest. Only fools would buy into the rubbish that Wall Street sells as investment advice. Buying bonds is nothing more then a used car dealer selling his lemons on some novice buyer. Wall Street is paid to sell Bonds. So Wall Street puts out investment "advice" to buy bonds as part of an investment strategy.
HTA today yields 5.9% and can raise the dividend at the rate that it can increase rents. A built in protection from future inflation.
Or one can buy into a bond fund which will increase and decrease it's payout according to the current bond yield which is about 2.6% measured by using Vanguard's BND.
If future inflation is measured at 3.0%, then BND is a net loser and HTA is a net winner. I choose to invest with a winner and avoid losers.
Hey, if you own shares you vote yes, if you want to vote no, then SELL your shares, that is how wall street works, the merger will happen, and if you don't like it, then move on, and invest in some other stock like PXD
What will next year's expected distribution be now that BRY will be acquired?
This is what I expect to hear tomorrow on the LINE conference call. I also want the coverage ratio to be at least 1.00. If LINE can increase the distribution by 10% and have a coverage ratio of at least 1.0 then good things will come to the shareholders. Let's wait and hear from management about what 2014 will bring.
I would be thrilled if the distribution rises to 26 or more cents per month for 2014.
By the way congratulations to all the shareholders who were patient.
October 23, 2013
Berry Petroleum Company
BRY: Q3 Results Positive, Raising Estimates
• Summary -- Positive. Very solid quarter for BRY, in our view, with the
company seemingly firing on all cylinders. Q3 EPS came in at $0.95 versus our
$0.94 and the Street’s $0.89. Despite being close to the headline number, we
admit we were underestimating production -- volumes for the quarter came in at
41.4 Mboe/d, about 4% above our Q3 number. Costs also came in below us,
which were slightly offset by lower-than-expected pricing. Adjusting for Q3
actuals and updated guidance, our 2013 and 2014 EPS estimates move to $3.21
and $3.36, respectively, from $3.14 and $2.98.
• Positive Ops Update. And positive nearly across the board, in our view. The
company was previously divided into 7 asset teams, with three teams in CA, and
one in each of the Permian, Uinta, Piceance, and East TX. This was done in part
to provide increased visibility as the teams prepared to move to LNCO. Each
group was likely striving to enter LNCO with their best foot forward, which we
believe helped each asset’s performance during the quarter. Diatomite: +15%
q/q, sixth quarter in-a-row of sequential growth, BRY still reluctant to say it has
found the ‘formula’...
• Still Party to Merger Agreement. Management still supports strategic fit of
BRY assets into LNCO/LINE, although it is awaiting clarity on a number of
issues. Most notable are the effectiveness of the S4 from SEC and the outstanding
SEC inquiry. We note either party can terminate the merger agreement after
October 31 without the $84MM break-up fee. Only question is where LNCO
would be trading without the SEC overhang, as 1.25 shares of LNCO currently fall
short of BRY trading levels.
issued on 10/23/2013
Wells Fargo has always been a big booster of BRY and does a lot of business with management
Both LINE & BRY passed on holding conference calls when when released their earnings reports. Both will be have to explain whether the deal happens or doesn't. My best guess is that LINE is pushing their 10Q out immediately after their earnings release and before Oct.31 is because the deal is happening and both BRY/LINE will jointly announce the news about the closing of the deal. Do not see how both LINE & BRY will both remain silent and not close the deal. Both would have to explain themselves either way. Holding off is more likely a sign that both companies are working together towards a common goal and will announce the news together when the SEC final does it's job and gives official approval.
Of course the jump in stock prices for a MLP affects other MLP stocks. Wall Street is always looking for another example of what happen between DVN & XTEX. Several years ago doomsayers were crushing XTEX shareholders, and now those XTEX shareholders have been richly rewarded for owning shares of XTEX. The exact stories between XTEX & LINE are different, but there are both MLPs that proved the doomsayers wrong.
david- you don't have to be POOR to get most of your health insurance paid for by the government. All you need to be is over 50 and have an income less then average. Try $17k a year in California for bronze and the government will pay your entire health insurance premium. You could have a million dollars in net worth and still get your health insurance paid for by the government.
dradubu- try being 50 or over; then the affordable health care act will pay for your health insurance based on your income for the year, the less you make, the more the government will pay your health insurance bill, nice deal if you qualify
you don't have to be on welfare or food stamps,
there are income & assets limits for those
affordable health care act provides financial assistance based on income & age.
hence if you are old, have money but don't make much you will get a reduction(government money) to help offset the cost.
Well investigating a tip sheet, like Hedgeeye for what?
Who are their investors aka financial backers?
Clearly, News Corp. aka Rupert Murdoch's empire has highlighted them an unusual amount of times, but I don't that is against the law, even if Murdoch has money invested inn Hedgeeye. Just Murdoch buying into the idea of spreading fake news via Twitter.
BRY shareholder vote will likely occur after LINE can and will release 3Q results. LINE needs to at least meet their own production targets of 820 MMcfe/d. If LINE fails to meet their own targets, then BRY can claim that LINE is not worth as much as when the deal was first made, and LINE's projections of their own production estimates were too high. In my humble opinion...