Selling at a profit is never a bad move, IMO. No doubt all the metrics show that PSXP is overpriced at these levels. I sold some from my IRA around $77 so I wouldn't get hit with a tax bite. Still keeping the regular account.
They're not dividends, they're distributions. Figure they are about 90% tax free unless u hold them long term. I've had them for about 10 years and an one happy camper. Reason for their tax status is they are deemed to be Return of Capital. Sim;ly put, Just like if u deposit $ into a bank and withdraw it, its not taxed, (Return of Capital). a huge tax loophole.
It own, operates, and develops interests in sand reserves, and related excavation and processing facilities in Wyeville, Wisconsin, including a 651-acre facility with integrated rail infrastructure.
Notice the term "integrated rail infrastructure" Needed to process millions of tons of sand. Yes, a small miner can get away with trucking if its pounds of sand. Economics of scale.
LIke any commodity, I expect that as prices increase, new capacity will come on line. However, it looks like demand is constantly outstripping supply for the foreseeable future. The beauty about this commodity is that the well's output decays fairly rapidly with time soooo, one needs to constantly keep drilling.
Eventually, supply and demand will equalize, just don't see that happening within the next 5 years. Not that easy to open up a new mine and have the needed transportation infrastructure to support the customers.
Actually, small earthquakes are a GOOD thing. Small tremors allows the plates to adjust without a major quake. Wonder why no scientists mention that. You heard it hear first-)))))
Why would anyone give me a thumbs down. It went from 65 to 60, that's not a correction?
Its a good excuse for a much needed correction. It was way overbought. Not even near its 100 DMA
It's waaaay above the 100 DMA. Most of my MLP's are down this AM. IMO, it's a short term correction.
I could be in error on the drill pad work, they might have done it for someone else. Another theory is that RNO owned some acreage in Utica that is co-owned by GPOR.
Interesting question. As far as I can find out, its owned by hedge fund Wexford Capital and maybe Gulf Port Energy. I used to own RNO. I believe RNO has / had a subcontract with Gulf Port to fabricate their Drill Pads. Not much info on Muskie other than a website with a picture of an enclosed frac sand facitlity. Who owns it? No financial info.
IMO, PEG and P/E ratios are rather useless for MLPs. Concentrating on distribution growth rate and Distribution Coverage Ratio is much more robust for MLP analysis. Another favorite of mine is monitoring the EV/EBITDA ratios.
I own EMES and HCLP equally. I'm only interested in MLP's which they are. Of the 2, IMO, EMES is better managed. HCLP stumbled last winter with its severity while EMES did not miss one production day since their production is winterproofed, whereas HCLP is not. Soooo, one is taking a gamble with HCLP next winer. Don't shoot the messenger
Nothing wrong with taking a profit. I'm sticking with QRE since I still believe its a turnaround situation. FWIW. I've had ARP in the past. Never know what the Cohen's will do, although I'm not complaining, I made some serious money with them.
I've been in and out of refiners for years. My experience is that one is better off without them. They are too dependent on the spreads. Better off with their mlp spinoffs. First one I had was the sunoco spinoff (SXL). That was a winner. Followed up with PSXP. Now I'm eagerly awaiting the Royal Dutch Shell spinoff slated for the 2nd half of this year. Question is to buy at its opening or wait several months.
I figured psxp would get whacked today just on its valuation bur, noooo, up it goes. Really doesn't make sense. I;m up 75% so far. Have to go look at my old adages about stocks.-) Bears and Bulls make money but pigs..........
MLP players don't care about PE / PEG ratios. Whats important is the Increase in Distributable Cash Flow (CAGR).