I sure hope that the Nicaraguans can make money off the canal. They sure need it. I've visited every Central American country and they were one of the worst off.
And yes demand will keep on rising as Barron's states:
The outlook for containerships is positive. Global container trade is currently estimated to grow by 6.1% in 2014 and 6.7% in 2015. Global container supply is projected to grow by 5.3% this year and 5.2% in 2015, and is therefore set to be outpaced by container trade growth.
I see you missed the point. The point is that Panama doubled their size and now Nicaragua is going to triple it. Why - because they believe that there will indeed be more cargoes in the future.
And isn't that a good thing?
As investors rush to sell those ETFs, they in turn have to sell at any price. They have to sell everything - both the good and the bad. We, meanwhile, can sit back safely in cash just waiting to pounce and scoop up the good stuff that unjustly got thrown out!
One doesn't have to be a Short or not "get it" to not buy today. Patience is a virtue and there is no reason to rush.
Lesson #1 is: DON"T FIGHT THE MARKET!
Think of the Shorts and the sellers as your employees. They are working hard to create value for you. If they can take out the low @ $16.88; hopefully the stock will crash and one can get an even bigger distribution percentage wise.
PS - this is and has been the easiest short I've seen in some time. However my broker has no shares available. I hope someone else can find them.
The NAV last Wednesday was $7.70. Since then the 4 top holdings have fallen an average of 16%. So my guess is that they will report a NAV of $6.47. SRF is trading at an almost 30% premium. Amazing!
$10.88 got taken out and the trend channel still indicates at least the possibility of $9 getting hit. The distribution will be near 20% at that point!
Even a retest of the lows @ $9.50 gives an 18.6% yield.
I sure hope that the market gods are willing to bestow such a gift. I am still thankful to them for all the gifts they gave me in 2009 that have gone up 400% and continue to pray for more.
And one must also remember that in the worst of times 2008/9 they continued to pay out full distributions. Still the entire sector has gotten trounced this year and there is still no turn around in sight.
The best strategy is still just to wait in cash and hope they can take this back down to the 2008/9 lows. The market is irrational after all. The further down NMM goes the bigger the pay out after all!
I have also been watching the overhead resistance at the 20SMA. Even worse technically is the downward trend channel it has formed which points to $9 if it is continued.
I badly want to buy NMM because of the distributions, but the technicals have to agree. I never fight Mr. Market. He is god and I am a mere peon.
You must have gotten burned as much I did on the Chiscam stocks to hang around wasting your time with one cynical post after another. I guess it is good therapy ... after all I too participate as a way of releasing my frustrations - even though it is about as useless as pulling the wings off black flies after having gotten bitten.
I just hope that you have been making money on other stocks as you get the Chiscams out of your system.
The dividend on NM is not guaranteed. The dividend on the preferred shares are. With the preferred shares the only risk is bankruptcy. But their upside is limited, whereas NM could go much higher - or lower for that matter.
The H shares are paying over 12% right now and if NM recovers in a few years they could go up by 30% to reach par value.
It's not the Sheep - but the Wolves who will sit and watch the divvy run up as the price continues to fall. Then after the Sheep get sheared - the Wolves will buy at the bottom.
If $10.88 doesn't hold - this could well retest the lows in the 9s. Who knows why NMM is down today when NM is again rocketing, but someone big appears to be selling. Best to let them get out before taking a go here.
Nows the time to make a list of stocks such as CVRR to buy when oil prices bottom. I see many that seem to be going down with the price of oil that shouldn't be.
Let's just say that you are right. Even if what you say is true, that would amount to only a 5% cut in the distribution. It would still be more than 14%.
I still think this stock is a bargain. However, since it is trading lock-step with oil for some unknown reason, there is no reason to touch it until oil bottoms.
I found an even better comparison. On Yahoo chart NMM with USO. NMM is trading on an almost 1 to 1 relationship with oil. Crazy - but that's what's happening...