who would buy 3 shares when even discount brokers would charge $7 for a trade? If they were buying for a child's birthday to own a stock, at least spend $100. . .rather funny on a slow day. Hope Armanino isn't selling a lot of pesto in China. . .I would guess it is not a big market for them, or not at all.
It was originally published in the London Observer - the WSJ should hang its head in shame for not doing this type of reporting.
As Liberace used to say - then he said, "I bought the bank" - I have owned SXL for 8 years, and "all I know" is that is puts so much money in my pocket each year that I DON'T CARE what the price is - Wall Street is often irrational, especially funds that need to show gains - that is where the "small time rich" can come in an buy and hold and make money!
The FT had an item that the Saudis are borrowing 57 BILLION in the bond market because they can't make money if oil is below $105 - essentially the Saudis declared war on North Dakota and Texas Shale Fields - I don't think people understand that oil independence is as important for the USA as the Navy and Army.
Obviously some big fund or computer driven trades here - SXL down $2.50 and other piplines are down Big Time - KMI, etc. some major fund selling???
The pipeline sector is in better shape than Big Oil like Exxon and Chevron - they also have a lot of nat gas transport to power plants and factories. . .I think most pipelines will muddle through this low oil price environment. . .Saudi Arabia is actually borrowing money to prop up its government spending, and that can't continue too long.
I have owned SWZ since 2006, so almost 10 years coming up. I am actually $2 underwater on my original shares, but because I reinvested ALL of the dividends and capital gains (the default position if you own this fund), I now have close to 5000 shares on my original 1600 share purchase. The problem with Yahoo "Historic Prices" for dividends is that they do NOT show capital gains. For example our "dividend" this July was .001 cents, but the capital gain was about .26 cents. The .26 doesn't show up on Yahoo, so one has to do more research on the SWZ website.
If there is a poster-boy for Buy and Hold, it is SWZ - let's hear it for compound interest!!
The way I see this is that SNH and the other RIET's buying a 48% share in the new PUBLIC RMR will get potential growth in RMR after the IPO. If RMR continues to grow and manage other properties, they could even start a dividend. RMR will get funds from the IPO to grow.
Here is the takeaway from my perspective. Let's say I own 10 apartment buildings and pay a management company 10% a month to manage the properties. That is 10% gone. If I own a piece of the management company, then I can share in their profits, and get some of my 10% management fees back in stock growth or dividends. I can't see much of a downside here.
This is the golden age for dividend and individual investors who don't panic when a stock price goes down for silly reasons or computer trading. I bought a huge number of dividend stocks in 2009 and kept the ones I already had - needless to say it was a good idea. The Fed can't raise interest rates very much or they will crash the economy, so I would not worry about high interest rate loans for SNH.
don't sign up for any of these class actions - I have been in the market since 1976, and have never received a penny from nuisance litigation - they are basically shake-down artists that represent themselves.
what more could one want?
There is a great article in the WSJ today - http://www.wsj.com/articles/balance-of-power-shifts-in-groceries-1427414817
About small natural food companies like Armanino - they can't keep up with demand!!
- they didn't mention oil fields, but that is assumed. . .the first missile to hit an oil field will cause oil to return to $100 in ten minutes. Stay tuned for more middle east mess - Nice safe Canadian oil might be the way to go here.
The WSJ had a map the other day showing Yemen on the Southern end of Saudi Arabia - frankly I didn't know where the hell it was. . .The Manchester Guardian also had an article about Yemen and the Saudi oil fields - getting a little to close for comfort. One stray rocket over the Saudi fields and oil will be back to $100.
Jim Cramer didn't help either, but today saner heads are back - the secondary gives SXL a lot of money to repay debt and keep our payout going. . .I have been through secondary offerings on most of my stocks, and usually withing a few months, the price is back to where is started.