Is the market is very frothy and is going to pull back at least 10%
I've raised a boatload of cash and this will be my #1 focus after a pullback in the overall mkt of better than 10%
We should see that soon as this will be a sell in April and go away in May yr
They will use option strategies to enhance the return and yield. However they must maintain that leveraged position at all times. Even if it defies common sense. No buts about it.
Premiums from selling puts will enhance the yield as long as the share price is basically even to positive(but destroy your equity if share prices drop, especially if they tank over night) Call buying enhances the share appreciation. It gets very complicated as all contracts have to roll forward with many expirations. Assets will also decay over time, especially purchased calls, when share price is stagnant . This is a very simplistic explanation of a very complicated tool.
ETNs can be difficult to short but that's the play in a leveraged long fund in difficult times.
A leveraged fund should only be used in times of fast moving share prices. Years of gains can be wiped out in a matter of minutes if the trend turns against you. They certainly are not for retirement aged income seeking investors. They are widowmakers.
Only a complete fool would advocate the average investor to go anywhere near them!
"leveraged" ETNs are not buy and hold instruments BY DEFINITION
Look.... big words... show just 1 instance since the rate was bumped in 2012 that I mentioned this..
IF you can't be a man and say I don't know what the efff Im talking about... You must know of an instance so get it and shut me up with an actual fact... fail to respond with an instance and I'll just have to assume that you were typing out ofyerass
And yes I have spoken to them.... I feel they spread as much sheet as any other company... they cant (refuse)answer why they stated they would return to retaining less cash after the financial crisis subsided and failed to do so....
What your missing here is that when they said they would return to retaining less cash after the crisis and failed to do.... makes all future comments from them far less credible
When you come up with that ROR # you fail to acknowledge that an increased dist growth rate will in fact put that ROR DIRECTLY in your pocket via a nice pop in unit equity
and that increased dist growth rate also results in far less units being issued because of greatly enhanced equity value... we could revisit 2012 when they issued units less than a week after bumping the rate which was the biggest clusterphuc in timing that mgmt. could have produced... not to mention the fact that the investment bankers profited greater than unitholders because morons at EPD handed them a massive bone to short
This is an MLP... your idea of cutting the distribution would in fact cut the equity value... people like to tell me to sell if I don't like the way things are but let me tell you IF you want this run like a typical corporation you are in the wrong company...
We know that MLPs from time to time sell off as a result of speculative talk on tax treatment... THE BIGGEST threat to MLP tax treatment rests in the retained DCF..... "typical" companies have to pay TAX on reinvested profits... MLPs get a pass because of the structure...
Tell me how EPD's equity value would react IF Uncle Sam targeted reinvested retained cash
I did not go toe to toe with Arb.... but enjoyed smacking around those that add nothing but name calling... & I don't think Arb took issue with any facts presented he did however offer an opinion that differed from mine and basically offered a speculative scenario that had DCF declining... IF DCF were to decline after all the organic growth EPD has had that would indicate a waste of the cash put into the organic growth and really pisspoor mgmt
The reality is Arb wants a higher distribution... he has greater patience in waiting for it than me
The fact of the matter is that EPD cannot trade much higher with its current yield and dist growth rate... and it will miraculously have a strong rally when the distribution growth rate is increased again
I want the added equity value and larger distribution now... added unit value is beyond the reach of partners because of mgmt. style....Covering the distribution at better than 1.4Xs and holding more than $1.2 billion a year "may" be better in the long term from some points of view but partners should be able to access the full value of their units at any time
That will lead to the argument of efficient mkts and some would say that EPD is fully valued right now.... I believe it's worth quite a bit more and the only way to unlock that value for partners is with a greater rate of distribution growth. I'll bet that most of you believe that EPD is worth quite a bit more too.... how do you think that value should be unlocked so that you as a partner has access to it now
I also laugh with all the support not increasing the dist growth rate gets.... it will make mgmt. believe that unit holders are complacent and it will be that much longer before the rate is increased and unit value unlocked
I know.... my response to your reasonable reply to my post will be attacked and called repetitive spam by some jerkwads... however an idiot like me believes that this is civil discussion relevant to EPD and belongs in this space
Please... you seem to be an authority... use the board to point out where I dis this over and over...
All responses were in reply to personal insults from clueless shills
It certainly isn't "over and over"... it hasn't been a topic here in 6 Qs since they went to a cent.... all replies from me have been in response to attacks on me because I even brought the topic up...
and as you can see... I will post what I want when I want... and you have the right to put me on ignore
But the beauty of that is all newbies will see what I have to say without the know it all response from a person like you who feels they have the right to tell me what I can post
I have the right to complain.... I have the right to an opinion...
and I have the right to show you to be the jackass that you were when you started this thread
Mr Analcyst told me he was a great investor... that he had a 14% yield on his original investment...
Could someone tell me whom that metric is relevant to.... besides him?... If we were to go to the key stats page would we find a line that tells us Analcyst's yield on the original dollar cost his investment
How does one consider that in evaluating EPD today... hey I'm in I want to learn... what does that mean to the new investor today?
can I get that yield..
That line from that schmuck was worse than sophomoric.... Proves that he has no clue what so ever in evaluating what is relevant today.. the yield is what it is and that's a current 4.3%
But he is such a great investor he can call me names because he disagrees with an opinion.... and to make it even more laughable... chumps recco his post as a good post.... as IF they too believe yield based on a decade agos dollar costs is a relevant metric in evaluating a stock today
Pathetic... and rather than attack me... IF I'm wrong... educate me as to why a yield based on a cost from over a decade ago is relevant today.... shouldn't be hard because so many like what he had to say
Tell me who made you the moderator as to what EPD related topics are allowed
Are only shills allowed to praise every action of the company?
Are they human at EPD mgmt... do they make mistakes?
Or is it nirvana at EPD?....
Let me tell ya'll something.... the attitude of longs that there is no room for criticism is alarming
Who would have thought that the EPD msg bd was not an appropriate place for investors in EPD to discus the distribution policy...
What kind of fool would think that...
Or should I ask what kind of jackass doesn't believe this is the place for that discussion among EPD unit holders... tell me liza... do you see yourself in those remarks.... jackass
It was DGAZ that hit the $6 low (it was in the $5s pre mkt).. DGAZ is 3Xs (short) Nat gas futures... UGAZ (3Xs long... had a $28.71 high today which would have been up 10%) was up at the open and sold off after the rpt... imagine... just like I thought it would...
DGAZ had a wild day after its low... traded up 13% at one point... but that's too volatile for me....
I think the trade is back into UGAZ late tomorrow morning.... they will be starting to speculate on the current "polar vortex" but that impact will be spread out over 2 weeks of storage rpts..... Nat Gas will break $5 in that time... UGAZ will trade to the low $30s.... a day or so after the last "polar vortex" UGAZ traded down to the $18s when the storage rpt from the week prior to the vortex was released.... the biggest screaming buy of any security I ever saw
I recently pointed out that EPD lost $70 mil on its hedges last Q.... IF I can make a killing (remember most here think I'm an idiot) playing Nat Gas futures you got to wonder who they have in control of the hedges at EPD... OH yeah... I forgot... EPD is the PERFECTLY managed company with no room for criticism of their actions.... they could not possibly have a better policy in place for distribution growth... there is no way in hell a more aggressive distribution growth policy would both enhance unit value and place more money in partner pockets...
Because they are perfect.... and if you think otherwise you are attacked and said to be whining because you feel things could be even better than they are... god forbid someone has an opinion that doesn't toe the company line
No... Mr name calling Analcyst... you Told me what a great investor you were...
I was nice and gave you a bone that is up 45% in a week and a half... 13% yesterday... and 10% premarket today (Oh and let me say its a take profit scenario prior to the storage rpt at 10:30 and the based on the #s you go either DGAZ or UGAZ but I know you are clueless to the discussion)
Seeing you were so intent on telling me how well you do... I figured I'd clue you in on how real money is made in times of massive opportunity... and IF you are a "real investor" in a company like EPD you surely should have know about the opportunity in DGAZ... because IF you didn't.... you have proven that you know jackdick
I own this as long as anyone on this board... since 2000 or 01.... I do great.... have you been in UGAZ lately? no divi but just double digit weekly gains... yep you are smarter than me but can't refute the facts I present
Not quite Mr Douchebag... EPD has an obligation do inform us why they have not followed the plan previously spelled out in SEC filings.... not that they have a new plan but why the plan they told us would come to fruition never has
It is funny however that you were incapable of disputing facts when you had said that I was confused by them...
again. Mr Genius Douchebag with the expertise that I lack... point out where I misstated facts
Remember you attacked me... I responded with facts.... and you resorted with more name calling...
Interesting how that played out
I may get married again. On second thought...
Now that would truly indicate that you have no brain... or at the least you were thinking with a different head
hers is how much we are being screwed.... IF EPD gave us a one time bump of $.28 they would still cover the dist buy 1.3+Xs.... let me ask.... what would a 28 cent increase in the distribution do to unit value?
Hey... IF the yield stayed the same we would be at about $72 unit... no one would want that now do they... oh wait.... younger investors would like that as the DRIP the dist..... it just screws older long term holders
I'll bet that those that like to drip today will feel like me when they use the distribution to fund their retirement
and I love the thumbs down... proves that there are a bunch of clueless shills on the board....who cringe everytime some one expresses an opinion that is actually relevant to the company
Serious question.... tell me why EPD changed the way they ran things?... till 2008 they covered the distribution at about 1.15Xs DCF... (of a much smaller pie)
That was with Dan Duncan running things.... Then came the financial crisis... and EPD told us all that they would retain more of the DCF till the monetary crisis was over... Its in SEC filings... lets go back and remember that the cost to borrow was going to be exorbitant IF CASH could even be found to borrow
Money is now both easy and dirt cheap for a company like EPD... they now retain 1.4Xs of a pie that has close to doubled... but unit holders haven't seen distributions double.... (one year they retained close to 1.6Xs a real big pie)
please give me your "EXPERTISE" as to why EPD has not distributed more of the cash as they said they would when the "smoke cleared"...
Was it outright lies?... you are an expert so give me a heads up on why the model has not reverted... oh yeah douchebag... point out any of the above that is not a cold hard fact
The 1/4 cent increase in the dist growth per Q is dwarfed by the actual DCF growth.... and I don't see the unit appreciation being so stellar above and beyond other MLPs... in my opinion its unit appreciation is right in the middle of the pack...
Blowhards here point and say but EPD has the ability to increase the distribution when taper finally hits.... can anyone point to anything that indicates EPD will do so at that time... or will they declare another crisis over the cost of borrowing and say that we have to continue to retain a large % of DCF...
The only thing that will insulate against a serious drop in unit value is sustained and growing distributions.... we saw all MLPs including EPD react in a negative fashion last year when taper fears reared their ugly head...
and BTW.... did EPD increase the rate of Dist growth at that time?... that's right... they did not
Wake the EFF up!
They used to cover just over 1Xs..... and IF you own this well over a decade..... selling is quite costly.... & I'll address that to the wiseass that called me McDuff... IF there is anything that pissesmeoff is someone telling me what to do with my money because I aired a valid opinion... hey tell me to sell because I have an opinion that differs from yours....
I could also point out why they changed style in 08.... its was because of the financial meltdown and the cost of funds...... that cost is miniscule today
No one has ever said that EPD should pay out every cent of DCF....
But now we hear the argument that all increases need to be in whole cents... who made that rule?
IF they were to increase the rate by 1/8 of a cent per Q that would mean a whole $1.1 million less in retained DCF out of an approx. $300 mil a Q.... yep.... that sure sounds like it hampers organic growth...
What it in fact does is increase the rate of distribution increase by 12.5%.... this being an MLP I wonder what effect that has on unit value..... but they'll miss that $1 mil out of $300 mil on the bottom line .... yep its a whopping $10 mil more a year paid to partners out of $1.2+ BILLION.... they lost $70mil last Q on hedges that they erred on
EPD is retaining as much or MORE DCF today with its 1 cent increases..... than it did when it was bumping the rate by $.0075 in early 2012
Lets not forget the law of bigger #s here.... todays coverage of 1.4Xs DCF is more in $ terms than 1.4Xs 2012s DCF..
That cash should rightfully be distributed to the unit holders and as I have exhibited before I will not shut up until we get what is rightfully ours.... Interesting that a real opinion on the company can attract more negative feedback in a few minutes than the fools that have been posting nonstop for the last 4 months or so