It's going to be hard to displace the existing suppliers. One needs a lot of supporting infrastructure such as rail terminals, etc, not just a sand mine. I don't know what Fairmount has.
Ii'm in at $38. EMES and HCLP are 50% of my portfolio. I sell some off so as to not exceed the 50%.
Others?, GSJK, also the General Partners TRGP and PAGP, they'll be taken out. PSXP although its overbought., Also the pipeline cos. such as ENBL, MMP and NGLS. Lastly, OCIR and QRE, NSLP.
Why do I rebalance? Sand is a commodity and like all commodities they follow the same law of supply and demand. In the beginning there is a scarcity, early miners cash in, then new mines are opened and eventually supply and demand come into balance. anyway IMO. Don't shoot the messenger-)))),
The demand will be there but, it won;t change the law of economics, supply will be increasing to address the imbalance. Typical commodity cycle. I'm in since $34, Don't shoot the messenger.
Wow,, i missed the boat on this one. Right now its in overbought territory, if it comes down a bit, I'll be picking some up. Great yahoo stats. Look at that ROE and dist. growth.
IMO, not so nice. Try squeezing out the exit door with those behemoths during the downturns. I'm in at $34.
Little profit? How about 20% on price appreciation, some more from at monthly distribution.and about 10% on arbitradge. From Wunderlich analyst. predicts a final price of $24.5 yielding 32% on a $20.15 basis.
I'm happy to collect my 10% yield over the next 4 or so months plus whatever price appreciation may occur. . As far as the mkt correction, ? who knows. good chance to buy more I agree with shadowknos.
For me, It's more a bet on buying out the General Partners. I also own TRGP for the same reason. Kinder Morgan is leading the way.
SXL, 3for1 split.. about $90:30. Why can't mlps do splits, nothing magical about them.
Probably good time to buy now, stock chart shows it's in the lower part of the channel. Hitting the 50 DMA., if u follow this stuff.
There is a point in time when equilibrium is achieved however, then, supply overtakes demand and prices come down, basic eco. 101. In terms of relevance, All I'm saying is that the oft quoted emes prices of $180 - $200 may never occur because of the aforementioned.
I've been pounding the table on that in my previous posts. One has to add not only the buyout price but also the future value of the distributions. Don't know why some previous posters didn't understand that.
Typical commodity cycle. Miners who were lucky to mine a commodity that experiences great demand see their stock price shoot up. Other miners quickly open new mines, supply eventually meets demand. Prices fall. Happens all the time. Only question here is when will demand and supply be in equilibrium
Much needed market correction. I've been in since $34. Too much hype and Disappointing dist. ensures a drop. I've been saying as much last 2 days but, investors were in denial.