This is the kind of growth that social media / cloud computing stocks hope to get to justify their outrageous stock prices of 30X revenue or whatever metric they're using. They should change their name to iMagellan or something.
I think that's really true of EMES, which continues to go up $3 for every $1 HCLP. Part of what we're seeing now with HCLP is halo effect from EMES and general industry awareness, and part is recognition of the impact of the Whitehall acquisition. At some point industry overexpansion will run into lower-than-expected drilling -- perhaps because so many E&P companies are funding everything with debt instead of cash flow, and *that* party might come to an end -- but tough to predict when that happens, or how high the floor will have been raised by then.
Am very puzzled also by today's drop, but based on the very high volume & no news, I suspect some sort of stock issuance event.
To learn more about STAG I highly recommend going to Seeking Alpha website and reading articles by Brad Thomas about it, he has written several over the past year that will you find most informative.
The difference in coverage is entirely because maintenance cap ex was double the previous quarter... if you go back to the Adjusted EBITDA line, that number (per unit) is actually higher than previous qtr. once you deduct the higher maintenance cap ex (and preferred distributions) is when you get the shortfall.
Hopefully the answer is simply that they pulled forward some expenditures, and it will even out over the full year.
Morningstar also covers ETE well.
:: I own 200 shares and cannot understand what the growth expectations are.
Can't help asking why on earth did you buy it?
bingo -- http://finance.yahoo.com/news/hi-crush-partners-lp-announces-200101749.html
must be nice to be able to trade on insider info...
"This is not a growth stock ..."
If this is not a growth stock, really, what is?? Stock price up another 13% since the original post... and that only matches the latest increased forecase for DCF growth, eg growth in the underlying business, not just higher valuation.
it should recover very fast
bingo... back above $51.
I suspect we'll look back and see nothing more than retracing the recent advance to set up the next move higher.
I don't think people have good clue about how to differentiate between simply leasing the physical facilities and providing other "value-added" services associating with data centers such as providing bandwdith, software, or other ser-related hi-tech infrastructure. Seems like some other companies are closer to software/service providers and others (like DLR) are closer to traditional real estate landlords.
The knock on DLR and other 3rd-party landlords is that they are trying to compete with google/amzn/fb which are building out huge data centers and then hosting other companies. That shouldn't be an issue in a sensible world, since even if goog/amzn/fb are doing that, it makes sense for them to lease the facilities from someone like DLR instead of tieing up their own capital in real estate... the problem is that these companies have *so much* extra cash on their books, they can spend it on real estate without affecting their business, no one seems to care about amzn's or fb's ROE.
Based on HCLP slides they have been showing for the past year, we are 5th in Northern White......8% of the Northern White market, 5% of total Frac Sand...
Not expressing an opinion on how likely it is, but that's a good profile for a company that would get acquired... a) not one of top 2, but b) big enough share to move the needle for an acquirer, and c) a pure-play in its market.
I'm guessing money is simply rotating from EMES to HCLP, especially with the new contracts that HCLP is signing. My sense is that HCLP has been held back relative to EMES in the past because HCLP's contracts gave it limited upside relative to EMES, but perhaps the new contracts (at presumably better pricing than their legacy contracts) are alleviating those concerns.