How / why is this stock so inexpensive? Revenue, growth and earnings all solid .
If the distribution remains at this level , total investment could be recovered just from the distribution in a few years........then you have the equity that not only will be remaining but growing as well.
What an opportunity assuming I'm reading the numbers correct.
You are correct. I don't think it was Hedgeye who directly was shorting.....sorry if I gave that impression. Hedgeye's M O is to get their clients to short the stock and then they go on the warpath and do a media call . I have no knowledge of what the short position is but since Hedgeye claimed last Tuesday that they see the stock going to a value of $0 - $6 , my bet would be that they had some clients doing some serious shorting.
Personally I think they underestimated the value of the AMAZING drop down assets of Utica basin with STRONG counterparty contracts and also the sponser's (Energy Capital ) willingness to support their investment.
Just my take on things......
I don't know what Hedgeye was thinking trying to short SMLP. Not only is SMLP compelling value on it's own with great strategic assets and rock solid contracts BUT the sponser is Energy Capital Partners. Google them !
Extremely deep pockets and tons of experience with all kinds of energy assets. I realize the drop down was a bit complicated in it's structure but incredibly advantageous for SMLP shareholders .
I personally don't see how Hedgeye will not HAVE to cover their short positions.....Energy Capital will simply keep buying at these low prices.
Yes I completely agree. I know this company well and believe it has great potential. Their clients and MVC contracts are solid . What will really be interesting is the Houston terminal that is being developed. This is a GREAT strategic location and the deep pocketed sponsor Energy Capital Partners has the $$$$ to make it happen. This stock is INCREDIBLE value at this price. It is so well priced that you could see your return of captial just through distributions within 5 years........once in a decade type of opportunity......IMHO