its not a stock, and it don't pay divys... once you figure that out then you will understand what is happening.
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.....
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..
when I bought these units I read the contract and it guarantees me a minimum .44 cent per quarter. So by not meeting the contract minimum does so I suspect they will loose there MLP status... IS THIS TRUE?
HOW IS IT THEY CAN VIOLATE THE CONTRACT?
well there is a whole host of unit holders who don't check there accounts and will open there checks with surprise... so don't think this is over... 30 days from now we will be in penny land
most holders don't have computers and internet, and all that. they just depend on that quarterly check. And when they open there mail in mid November and see the small check, there will be another 50% decline. So I see it gradually falling until then and then I see another big hair cut. I plan on adding ever month and I hope 5 years from now that they are up and running again. I actually own a little piece of land at the road to one of the elk horn coal mines. So to me this is reality. so take it from someone who's account value is drained. don't think this is going to perform like a regular stock...we will be priced just like JRCC, anr, aci... so we are headed to penny land
dream on dude, we are headed to penny land... fact... total fact...
the reason we own this is because we were guaranteed a distribution.
fail to meet the distribution.... everyone is gone... just watch...most people wont
realize and dump until they see how small there check is... so we have a month of solid
decline ahead of us... we will be down near jrcc, aci, anr
I actually own a piece of land at the foot of one of rno's coal mines. right at the entrance. And I am telling you the reason we own this is because of the .44 cent... So when people open there checks in a month we will be in penny land, with jrcc, anr, and all the other coal companys...
I looked it up... MLP status and a non federal tax payer has some requirements, one of those is to meet your contract... So they will become a corp, and will pay federal taxes...
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
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?
yes, and have to pay federal taxes, and they are now probably a stock..
but all of us holders, were holders for the income... I did not care if it traded at 1 dollar or 100... I was in because of the quarterly check. so we are really loosers.
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....
You should read, there is such a thing as MQD. minimum quarterly distribution... And I believe that if you default on this you become a sub chapter S corp... and I did read all this a few times.
As an MLP the contract requires a payment of .44 per quarter to unit holders. So the only way they could sell units is if they have income to pay dividends. So having the ability to issue units, is not issueing units. I would love to see the price drop more. So I can buy more shares. Im ok with the units falling to a dollar. All I want is my .44 per quarter.
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