The more I think about what is going on and the fact that their new CEO is Koch Bros trained, I think they may be preparing to take this private at as low a price as possible. The Koch's and their employees are notorious for secrecy. They have taken a number of public companies private and don't like public scrutiny. Just a thought.
Kicking myself for not staying away when they hired a Koch Bros trained CEO. The Koch's are notorious for their disdain and hate for just about anyone not connected with their family. As only one small example, they blow up one of their fertilizer plants in Texas and kill some workers, hush up the fact, and stop a bill to increase safety requirements at similar plants as well as making it illegal to identify the locations of the rest of the similar plants they own so surrounding neighbors could know what may be in store. They are worth over $40 billion but don't want to spend a penny on anything but their own self interest.
When a company is reviewed by a rating agency, it includes obtaining info directly from the company and communication with the CFO or equivalent. The company then figures out that a downgrade is happening prior to the rating agency news release. The upswing in CLMT unit prices accompanying the CLMT press release and then shortly thereafter the cratering of prices several days prior to the rating downgrade and subsequent death spiral of the CLMT price still taking place makes you wonder who the CLMT insiders are looking out for. Why did they publish the press release to support the price and suck in small investors (like me) when the price was way above what it is now and the downgrade was in process?
It does not make sense to respond to the downgrade (although some did by having inside info in advance of it being published and carrying out major selling). CLMT had an email re: maintaining their distribution about three weeks ago and will have an earnings report and conference call in about a week. That is more communication than most MLPs make. Look at NGL that just published their quarterly online late at night without warning and no conference call is indicated.
from a post another site: "NGL is pretty bad. Ebitda about 2/3 of what was forecasted in mid November and Q4 expectations (this upcoming quarter) seem wildly optimistic unless we get The Day After Tommorrow weather in Feb/March."
If the ship sinks, it will only be the small investors that go down. I've already expressed concerns re business ethics of his former employer, the Koch Bros, that must have had some effect on him.
At the present/recent rate of decline, CLMT will be priced under $4 when they have their conference call. The info that was given to the rating agencies, and likely in meetings, was well known when CLMT had their famous press release. Unbelievable.
thanks for posting this. Looks like Moody's reiterated what Motley Fool said. Not sure what CLMT news release meant by the family that owns most of CMLT would stand behind the company, but it resulted in many of us not selling and/or buying. CMLT has assets that will be helped by higher crude prices, so the Motley Fool piece may have been a little over negative on this point. Obviously, as usual, the Moody's downgrade was known in advance by the sellers of the last few days.