Art Penn is one of the more respected managers in the space. i'm going to assume he knows what he's doing. they haven't made any claims that this is some huge game changer for PFLT. they basically just say it'll increase liquidity and give them more flexibility. and to that point of liquidity, just one share holder bailing could drag the price down significantly when the average volume is only 50,000 shares daily.
the consensus of analysts are bullish on KMI with price targets in the mid to high $40 DURING THE NEXT 12 MONTHS BASED ON THE TRADITIONAL YIELD ON THE PROJECTED DIVIDEND. the fact that the stock could sell-off in the interim does not make those bullish calls invalid. and i assure you, when KMI goes back to $40, Valuentum will still be ripping KMI a new one.
ha! good point! but you know... if you check the daily volumes pre-split, it looks like the numbers that are used for the 3 month daily volume ave might be split adjusted. yahoo has the daily ave #$%$2 million shares. it's hard to know if it's split adjusted because there were huge volume days starting with the WMB news back in june.
has there been specific recent chatter about EPD going after TRGP? i know ETE was interested but bailed out. it seems all talk on targa has gone quiet.
i only see 50,000 after hours shares trading hands, and only a couple thousand at an elevated price (above the close).
nothing has fundamentally changed. and for what it's worth, the analysts who cover private equity are bullish on KKR. that's not to say there aren't risks to the sector from exposure to energy to regulatory action. but the mean target price among 14 analysts covering KKR is $29. Morningstar, which is usually conservative, gives KKR a "fair market value" of $30
"Samson is now held at $0.05 on the $1, and so that's been written down over the course of the last 18-plus months, so that economic write-off is largely behind us." Scott Nuttall - KKR Member and Head of Global Capital and Asset Management Group. you can find the transcript on seeking alpha under KKR -transcripts - feb 10, 2015
it may very well be due to the fact that PFLT will under earn the dividend for a while before the new cash is fully deployed. short term pain for longer term gain. regardless, management has plenty of "spill over" cash to pay the current dividend until new money is deployed.
"1. These securities were sold and/or held directly or indirectly by Fortress Operating Entity I LP ("FOE I"). Wesley R. Edens does not personally own these securities" -SEC Form 4.
huge volume in recent days. even in the after hours. no great movement in price. not sure what to make of it, other than maybe kelcy warren is buying more.
the entire mid stream sector has been destroyed despite good quarters by most. ETE and WMB have solid growth going forward and they have been hammered as well. the sell off is unrelated to actual company performance. after the initial sell off weeks ago, Cramer attributed it to a forced liquidation at a hedge fund. the price action of the last couple of days may be the same.
good move. seriously, how much lower could it possibly go? any significant push lower would probably be short lived. KMI is pretty cheap in the mid $30s, let alone $31.50. best of luck.
a couple of weeks ago cramer explained the sell off in the space as a forced liquidation of a large hedge fund or two. the last 2 days appears to be the same situation. god only knows where it all bottoms, but you have to figure a hell of a buying opportunity is near. unfortunately i suck at guessing such things.
the offering certainly makes it appear as if management has virtually zero regard for the share price or shareholders. RAS had an highly unusual good day yesterday, and they thank new shareholders by slamming them with an SPO. it's really bizarre and tone deaf. and there was no reason to think the share price wasn't going to continue to drift up in the wake of the earnings call. just pathetic.