Considering there were over 7 million shares traded yesterday - on the open market (not the 8 million placed via secondary) this board is VERY quiet. . .I would guess most shares here are NOT owned by individual investors like myself, but large funds and institutions. Over at T or VZ or any other large cap, the boards light up over the slightest news - I guess SXL is a bit of a "secret" and we are members of a "small boys club?"
not great for the short-term - likely a $3 drop in price with the dilution, but for long term holders (I am) it means they can pay down some debt and have more money available for payouts. . .this should be a good opportunity to buy on the dip for those fence sitters.
power plants are less attractive in a solar, etc. environment, but the network is key - we have friends that "sell into the network" - but people have to pay a fee to access the network - much like pipeline companies charge to move gas and oil. I am glad DUK is getting rid of old power plants.
It would be better at this point to announce a share buyback rather than increase the dividend - there are a lot of people out there who might want to sell some shares off for a profit, but with such low volume it is difficult. For those large holders, sometimes it might be possible to do a private placement. There was a story in the press recently about brokers who specialize in face to face selling when large shares of thinly traded companies are involved.
it always amazes me that people read a headline "Earnings down" and don't understand why - that is why I bought more AH at a lower price - THANKS idiots!!
As a long term holder of SWZ, I applaud the change in fund manager - this fund has always been under appreciated and under respected.
They also have a big share in SXL - lots of mergers going on.
it is actually funny to watch the splish/splash of money drain from Facebook,et.al. to SXL on a bad Nasdaq day, and then today when everyone wants tech, it is drained from the dividend sector. . .ALL of my MLP's and Utilities are down today, and all were up yesterday during the "tech wreck." - to all long term investors, this means NOTHING - it is just computer driven trades to make money day-trading for large funds - it DOES mean that small fry like us (less than 5 million) can pick up nice stocks when they are out of favor for the day.
It looks like things will be a bit flat this coming year as far as production, etc. Not bad, but not great. . .looks like dividend is covered - my guess is stock will be range-bound for a long while.
I hope this makes SXL a bit more liquid - the price seems to fluctuate a lot on somewhat low volume often. Earnings seemed a bit mixed, but I guess expected, but future growth still looks good.
Its the same thing here in California at our utility meetings - communists environmentalists likely own one share to be able to show up - they are just anti-business.
I noticed that large order also - 35K shares yesterday for sale - perhaps it is time for another announced buyback? There are a few large holders that want their money - perhaps to buy a house or car? - often people sell for reasons unrelated to the company and stock - they simply need the money. . .
I figure at 15%, if they pay out for three years, I will have received 45% of my initial investment back - at 4 years 60%, etc. I just read the annual report and cover letter - they obviously are here to stay (or at worst be acquired). A small company like this is more risk than Facebook or some other tech junk, but do you really want to put your financial future in the hands of fickle teens who flit from one social network to another? . . .give me oil and gas any day!!
Some day soon Spyglass will get the respect it deserves, in the meantime I keep acquiring more shares whenever I have "spare change." Not to slam Spyglass, but at these prices it is less than a lottery ticket.
Guess 5% or 21% a year isn't enough for Wall Street - down today - it is certainly enough for me!! I have been here 6 or more years and am a happy camper.
of course it doesn't take much to confuse Wall Street - while the merger makes this a question mark for Wall Street, the small investor like myself can pick up this gem at a low price and high payout.
Wells Fargo has much more credibility than Hedgeye - so if Wells decided to reiterate their bullish position, they have more to loose than some"third-rate" short seller group.