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.
I feel they are a bit too negative on forward guidance - they seem to be factoring in the worst case scenario here - a hot summer could make things look a lot better.
Last year the annual secondary offering was in April - maybe they will start doing their secondary offering (dilution) on a 6-month basis - the market seems to eat these up. . .as long as they pay the dividend, I don't care that much.
From Bloomberg to Jim Cramer - "buy USA" seems to be the trend in 2015. Considering the mess in Europe, slowdown in China, etc. companies like Armanino are back in favor. Interesting about Rothchild Fund - Their portfolio is online for viewing, and contains some very nice solid USA companies - looks like my portfolio - Chevron, Pfizer, utilities, etc. - very boring and very stable!
Considering the largest holdings of SWZ are Roche and Novartis, I doubt if either company will suffer because people will stop taking drugs because of a 14% increase - as many of you know, Roche owns Genentech here in the USA, so it should not impact the sales much at all. I am not going to stop buying my Nespresso caps from Nestle because they might go up a few cents (actually they did a few months ago). Also the SNB is likely to take other measures to bring the Franc down.
In other works - "business as usual"
Perhaps the old saying, "sell on news, buy on rumor." - it might be people selling for tax reasons now that KMP will no longer be a MLP - actually I sold in my regular account just for that reason - I didn't want an accounting nightmare - hold all in IRA now, but will buy more in regular account next year - it will be taxed at the "qualified" dividend rate of 15%.
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.