Should be giving SFY a nice boost today.....not much so far. Maybe they can put some hedges in place.
Earnings out Thursday pre-open. Will be VERY interesting to see what Swift mngt has to say. They're like ostriches with their heads in the ground.
I'll even give you a thumbs up for the way things are now. I'm looking further ahead. Smart investors look ahead and don't wait for the future to come to them. When the hedges come off and the sub period ends this will be a significantly different situation.
Don't you think sharp investors will be looking at those issues 6 months or a year ahead of time? That's why I'm trying to point out potential pit falls before they happen. That's part of the reason the stock is now under $10 and not in the $20 area where the yield would be in the 13% area. I owned it then, almost 2 years ago. At that time smart investors were already looking forward to the things that WILL happen 6 months - 1.5 years from now.
Gasoline just broke the $3.00 barrier here in Green Bay. Now at $2.99.9. Strange that it's always more expensive here in GB. We are the main distribution point for NE Wisc. and much of Upper Michigan.
Kel............holding SFY and AREX
If all the units had been common units this 1/4, instead of some being sub units (getting the lower rate), each unit would have received about $ .537 per share. Parent company (SD) will actually be better off when the sub units convert to common.
For more info on how this works...........see the 4-24-14 distribution news release from SDT (near the bottom). This was the end of their subordination period and it's well explained. By the way, their 1/4ly dist has fall about 40%+ since that period ended. Was . 42+ six months ago, now just declared .2469.
Currently about 40 mil common units and about 12 million subordinated units. When the sub units convert to common units they will then get a larger distribution. They are suffering right now due to the sub. level not being reached. When they convert and get a higher distribution (as common units), this will likely hurt the overall rate and reduce the dist amount for then current common holders.
So common holders, when the sub units convert, they will be equal to common shares and command a piece of your pie.
Low around 25 here in Green Bay last night. Some lows in the 'teens' last night in Northern Wisconsin and Upper Michigan with snow. Snow expected this Sunday in N. New England.
Natgas has been out performing oil.
Last 5 days UNG (1 X ETF follows natgas) up 6.46%..........OIL (1 X ETF follows WTI) up 1.28%
UNG down 3.89%......natgas
OIL down 16.81%......WTI oil
Hang in there.....things are turning in our favor.
STREET story found under CRZO symbol......almost makes it sound like SWN made a mistake buying those properties. I know the STREET isn't very dependable and is in the business of "manufacturing" news. Worth reading though.
Actually a good story for once. Found it under the CRZO symbol. Worth reading. The main premise is that the Bakken and Eagleford formations are strong producers and are likely to see the least cuts in CAPEX if the industry starts making cuts. SFY not specifically mentioned.
Kel.....a holder of SFY and AREX
$10 mil per 1/4 in correction for overstated AFFO will not cause an elimination of the div. It could cause a small cut to perhaps .075, but maybe not even that.
SFY weak today on high volume....what a joke. Stock not that weak and volume not that high. Just moving with the oil price in spite of natgas being strong.
About 15% rate on the $8.5 million borrowed. Around $1.25 million annual and about $325,000 per quarter. Not a problem at all if revenues grow and margins maintain or expand.
Last 1/4 they said on August 7 that the report would be on the 14th. I also wish they were a little more extroverted.
One or 2 low ball estimates can really pull the "average" estimate down. Same goes for price targets.
Oil down today, but natgas up a similar %.