I felt (despite missing Wall Street's estimates) the report was great! And the guidance for next year was reassuring for long term investors. . .I would guess guidance is even a bit conservative.
I often check the boards to see if there is news that I missed, or sometimes people link to items in the Canadian press - we did get a nice write-up from Seeking Alpha a month ago - hope they can continue to fund the nice dividend until the prices catches up.
nice revenue increase and nice dividend increase, but earnings miss could #$%$ the markets - I am here till death (or takeover which ever comes first), so I don't really care much about short-term trading.
Thank you for a great overview. I owned both NRGY and CMLP before the merger, so I likely have one of the larger holdings here (unless fund managers read this) - I never get to upset about secondary offerings, because in fact only strong companies can use this path without having their stock tank. Most of my MLP's (APL,APU,SPH, etc.) have done secondary offerings in the past few years because the market is strong. I am a "Buffet" investor, so my holding period is "forever" (although buy and hold does NOT mean buy and forget), so if they can raise the payout by new acquisitions, that is great - I live on payouts and dividends.
I also find the revolution in American energy exciting, and have most pipelines in my portfolio. Also there is a stealth revolution going on in auto and truck use of natural gas. The entire bus fleet in LA, San Diego, and most of the western USA is NG. Recently GM has joined Honda in offering a Natural Gas option for cars. Truck fleets are also changing to NG because of lower costs. Essentially the USA is does not need to import energy anymore.
In my nearly 40 years of investing, downgrades mean a big institution wants their clients into a quality company at a lower price - hence they downgrade to walk the price down. . .then a few months later, one of their "friends" at another firm will upgrade the stock. . .Don't tell me I don't know - I was on Wall Street for years, and helped train a generation of analysts. My favorite story was 15 years ago when two of the largest investment banks got their story wrong - one upgraded Coke and the other downgraded Coke on the same day - MarketWatch had the best headline ever - "Is the Glass Half Full or Half Empty?"
Nothing wrong with taking some money off the table - I did that in the late 1990's and paid off my mortgage also (sold another appreciated stock). At around 2 I will also sell a small amount - in also around .29 and at least cover my initial investment.
The press release was a bit unclear to me, so comments helped. ..agree that secondary offerings to pay down debt are good for shareholders in the long-run - I am like Buffet - buy and usually hold for life.
Thank you - but still have a question - what happens to NRGY? I have actually owned CMLP and NRGY for a long time, and I read the merger news, but didn't pick out that NRGM was the surviving company - Then will NRGY stay around?
I thought NRGM was the spin-off and CMLP was taking over NRGY? So if NRGM is now independent why would their secondary do damage here? Perhaps I am missing something?