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.
The financial stats reflect the dismal performance. Negative "Return on Equity" and "Debt/Ebitda" ratio of 5, where it should be no more than 4 for mlps.
. Both big warning signals. IMO.
As far as i'm concerned its a big disappointment. Several pundits published $10 dist. for 2014. Not now.
I would rather have seen them issue a secondary(s) to raise CAPEX funds and keep the dist. growth intact. Let's see how Mr. Mkt views this next week. Secondaries would also beneficially have increase the thin float. Couldn't tell friday since the market sold off.
I agree, This market correction is a gift for us QRE holders. Chance to back up t;he truck and buy some more. Easy money. Almost guaranteed 10% upside, 4 - 5 more monthly distribution AND 2 tax advantages.
Unless they were prevented due to their variable rate charter , I'd believe they'ed be better off issuing secondaries to have the market pay for the capex. There would be some stock dilution which would be a good thing IMO, since their float is vary thin.
I now realize that this is a variable rate MLP, unlike the majority of mlps that are, say, constant rate MLP's. Investors measure their performance by holy grail of distribution crowth. So, the latter mlps would have issued secondaries to cover the cost of capex (new mines) in order to maintain their dist. growth
Variable rate mlps are not under that need. Let's see if Mr. Market understands the difference.
The weather problem was last qtr, not this qtr. Nothing to do with this qtrs increase.
Mr. Market tomorrow will tell us whose right or wrong . I have a big stake in this co. so I hope I'm wrong.
You obviously don't know anything about MLP's. It all about the distribution growth rate. If this co. was hitting on all cylinders, then the dist. would be a lot more this qtr. They should have beat HCLP's 10% increase this qtr. since they don't have to feed distributions back to the GP.