I stopped the drip last February anticipating this take down in oil. I just have all my divvy's and distributions overseas earning 7.2%
You're correct in that my heirs could sell all the stock as soon as my body reaches room temperature as they receive stepped up basis and therefore no tax man gets involved.
If what you say may happen all these MLP's have to do is covert to either S cor reg corp to keep going. And if the government continues its intent on destroying the
American economy oil and gas will still power homes and what's left of businesses. Solar cannot and never will compete with "ON DEMAND' energy requirements.
There is huge support between $15 and $17 on the P&F chart. I honestly don't think the price will drop below that. But I do expect the price of crude to trade in the 20's.
And I expect the price of oil will rise as soon as Obama leaves the White House on Jan 20, 2017 since he and his Saudi cohorts instigated this oil take-down to destroy Putin and Russia..
First of all there won't be many individuals left who have cash at the lows. Only the mutual funds.
Second, there are many like me who are raking in massive distributions each quarter and have been since way back in Dan Duncan's days and cannot sell due to huge gains for the tax man..... I will leave the stock to my heirs so they can have a healthy income in the new third world called America.
EPD is not going out of business so hold it until oil and NGL's are not used for anything in our declining economy.
BTW, the chart for VNRBP shows a great move coming in the stock price. Possibly to $8.00/share
"I urge something similar to preferred shares."
Why don't you just sell out of everything VNR and move on? There are so many better company's to make money from than to make a ridiculous statement as above. And what just happened with the bonds is called DEFLATION. Those funds evaporated and went to money heaven.
How about the principals cutting their salary to help out of this debt bomb they created?
Yep! And I'm still in the camp that oil will trade at $25/barrel of maybe even $20. I think the last couple of days rally in oil and the energy complex is that they were very oversold. One indicator I follow is the Bollinger bands and crude was at or below its lower band and that meant a technical rally was due. Eight out of 9 days the price was hugging the lower band. I have rarely ever seen that happen for more than 4-5 before a rally occurs.
In the case of VNRBP the price action created a "waterfall" event into the lower Bollinger band and that too was due for a rally.
Should be an interesting week for the energy complex.
I owned PFF until 10months ago. I noticed that the yield was dropping every 2 months or so and that told me that there was a concern on my part for many of the preferred that PFF held.
I agree with you that this is short covering rally. I think we have more downside to the $25/barrel level and possibly to $20. I am not buying anything energy right at this time because of my gut feeling. If I'm wrong then I will pay more but hopefully guarantee I'm buying on the way up instead of catching falling knives.
I too am selling calls but also selling puts on the stocks I hope to get at fire sale prices.
The wild talk on this board is that DLNG was going to increase divvy's. Well, that didn't happen. It stayed the same and that is good for the moment.
On the other hand , not sure where you got the info on the preferred divvy being cut. My calculation is based on $2.25 a year and that's what is going to be paid out this quarter in Feb divided by 4 = 0.5625 cents.
The rule is that the common divvy has to be eliminated before the preferred is reduced or eliminated. I think the preferred is soooo much safer in this stock price environment than the common. The debt the company has taken on is a major factor for all companies these days.
I suspect that the price of DLNG will climb going into ex divvy date but I do not think this is the bottom in crude oil which has been driving these stocks down.
Dynagas LNG Partners LP Declares Cash Distribution on Its Series A Preferred Units
Ticker Symbol: U:DLNG
MONACO -- (Marketwired) -- 01/21/16
Dynagas LNG Partners LP (the "Partnership") (NYSE: DLNG), an owner and operator of LNG carriers, today announced that its Board of Directors has declared a cash distribution of $0.5625 per unit on its Series A Cumulative Redeemable Perpetual Preferred Units (the "Series A Preferred Units") (NYSE: DLNG PR A) for the quarter ended December 31, 2015.
The cash distribution is payable on or about February 12, 2016 to all preferred unit holders of record as of February 5, 2016.
The simple calculation is that the preferred was issued at par $25.00 with a $2.25 per year divvy. That equates to a 9% when issued yield. So the divvy has not be reduced.
Oil has been quite oversold technically for 11 days. A technically rally would be in order right now. If one wants to buy any energy stock I definitely would put a tight stop sell on the trade. There is still a huge quantity of oil above ground these days.
No. The guys who run VNR are not smart. They took on too much debt like many other companies trying to get in the big league.
This was a great company 3 years ago. Now it is a company teetering on bankruptcy.
Let's see what happens to next month's distro.
I agree with suntzu about institutions will be out for blood and that means the divvy's on the preferred.
If it was an institution then they felt a few pennies was worth more than zero.
I too think that VNR is finished and it will be this quarter it will be officially stated. I hope all the chiefs at the highest level of VNR are on the unemployment lines mid 2016. They destroyed a good company with a massive debt load. They just couldn't resist cheap money to borrow. Many companies borrowed capital to either pay divvy's or buy back stock. That would have never even been considered with interest rates at long term normal rates.
The FED destroyed many of these companies and the American dream for millions of people with their zero % interest rates. Never before in history has interest rates been this low. Tells you something about how bad the world's economy's are.
It will be soon as none of these shale companies can borrow any more capital. They are finished. They are hoping for a reversal that is not coming. They are soooo f...........
A few years ago when I read Simmons' book he stated that Saudi oil was 90% water cut. How the hell are they still pumping 10,000,000 bal a day 66 years after Ghawar first produced oil?
Unless oil is abiotic. Then that changes the dynamics.
Oil execs will be carried out on stretchers soon enough. Then they can join the unemployment lines like millions of others.
Don't neglect the vendetta Obama has with coal and now oil. He would exec order them out of existence if he could. He wants clean energy i.e., solar.
Might have to wait until President Trump is occupying the White House for a change in energy policy.
I predict $25 oil very soon and possibly $20.00 oil in the next 45 days.
Soon oil will be cheaper than water or orange juice.