on the other hand...
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.
this latest run is different though... HCLP has been noticeably outperforming both EMES and SLCA for past month or two. Up till past month, HCLP was just part of the whole frac-sand story, with EMES leading the way. Today is good example, EMES is down while we're up almost 4%.
" How high can it go???"
Why don't we ask the insiders who are trading the stock ahead of these announcements?
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...
Looks a lot like some good news leaked, and we'll all find out tomorrow? It's unusual that HCLP is up this much without EMES being up more, tells me that something specific to HCLP is happening?
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.
Was just looking at the most recent reports (March 31). PDI continues to way over-earn its distribution -- NII for 3 months was 0.93 vs distributions of .571 (.31/month vs .191 payout), so about 0.12/month difference. That is consistent with the year-end special distributions we've gotten in previous years, so it looks like we're setting up for either another distribution hike or another big year-end payout.
UNII was already 0.25 at end of March, which (more or less) makes sense because last December's special distribution left the UNII balance slightly negative.
Got some more at 44.91, myself.
No idea when it'll climb to 47, though.
When they outlaw winter, let me know. Till then I'll collect my 7.5% distribution.
What's puzzling is that EMES hasn't dropped nearly as much as HCLP, and that's the one that has *really* run up -- you'd think if it was an industry-wide issue, EMES would sell off a multiple of HCLP.
Regardless, you have to expect that new supply will come on market aggressively and "sand as gold" is kind of unrealistic. Geologically there's no real difference between Wisconsin and Illinois -- or much of central Canada, for that reason - -and other deposits will be uncovered as people start looking for them now that they're so valuable. But HCLP's first-mover position, distribution, and contracts are important -- if new supply *does* damp future price increases, that only makes it tougher for new entrants.
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.