when you say stuff like that you just let people know how much you don't know about the stock markets. Theres no body shorting rno...and nobody shorted it on its way down... first since 2007 its very rare for anyone to have a full service account. My account is very old and its full service and its also mariginable.
So, I could have shorted rno, the first 5 minutes until ameritrade ran out of shares to borrow from other accounts.. But rno made the announcement after hours of the dividend cut. the number of accounts holding rno is small anyway...so don't believe it.
did you guys not know....when you buy an mlp the object is to die holding it.... then it passes tax free to your erors... so when I bought it I figured the money was gone.. I was paying for a life time of income...Ill be buying this for the next 20 years... it will dip to a 1.50.... then as the politics change in the future it will go back up... hopefully I can buy thousands of shares while its low...
when you buy an mlp you should exspect to loose your money. in fact your base looses it tax deductability ever year you own it.. so buying an mlp is a purchase of future income. I plan on this bottoming around 1.50 and I plan on buying... this unit will be back to paying 15% and back around 20 dollars in 10 years or so... so this is a good thing for me. there wont always be a war on coal.
I have a full brokerage account, from back in the day... I can buy on credit and short and do all the fancy old school stuff that they don't allow now days.... and its true... to sell a stock short it needs to be of some quality... like say ford... when you sell a stock short it means your broker is bowering from an account on there books and selling it... taking from peter to pay paul. So no one is shorting this stock.. the 1% represents the ones that did it at 12 bucks... before the brokers cut it off...
i think you guys make this stuff up... I have an old account, that has a giant margin... old school style... and I am only able to short what stocks that are available, and when a stock drops below a certain level its not shortable... also a stock must be of some quality...So I think you guys make this stuff up.....
If they will say that then I will keep buying....
there will be another drop on the earnings report,
So we still have 2 or 3 legs down to go... before we bottom and turn...
also a lot hinges on the election
I agree, but I think it will dip below a dollar first then climb to the 1.35 area...probably summer 2015... so 2 quarters to bottom, and recover to the 1.35 area... so I will pick up a few thousand shares... hopefully Hillary is kind to coal
well, your right, but with an mlp, you have these two types of units, and so with stock you have common and preferred... I don't know if it would take that route. are you saying there are subordinated units in the volume today?
your right, but since there has been a war on coal, people have ask a greater percentage... it would be 2.00 if it were normal times and people would be happy with 10%.... but I think because of the risk people will require 20%... remember they were paying 17%....so people are requiring higher for coal... mlp oil refinerys would probably be ok with 10%.... but your right.
the war on coal will last at least another 2 years, and I suspect they will just idle mines and layoff workers... probably issue stock...you need debt to file BK... and so I don't see BK in the future.
very good post, very good..
If management reassures me that they are committed to being an MLP and committed to paying the maximum possible, I will keep buying, during this long dip...I suspect we will be in penny land for the next
2 years... then hopefully the war on coal will subside...This will be a great investment if we can buy weekly for pennies then see a jump back up to say 30 dollars in 2 to 3 years...
the people who buy mlp's do it for income.... you actually get penalized if you sell them.
so the price of this is not going up... I suspect we will be below a dollar, until they raise the disbursement
back...then the price will increase as they increase the disbursement...in fact .05 payment on an
mlp will set the unit price to about 1.25... and then it will creep up as the disbursement creeps up..
My concern is that they remain an mlp committed to paying the most possible disbursement. If that is the case I will just keep buying... I have always viewed the share purchase of this as a cost.... and I never intended to sell... when you own mlp's your disbursement is income, differently taxed than a dividend. And the only advantage is to hold until death and pass to your estate
it was a 30 dollar stock that was politically repressed that kept paying its divvy...look at its low p/e most stocks are 13 times....
same thing happen to cigerretts.... they even ran the company out of Louisville ky. but they still sell and still have a powerful stock. rno is probably the second best coal company, or maybe 3rd. coal will come back.
I suspect we are headed to penny land... I will just buy ever week. 5 years from now we will be back in the 20's