Today from SA:
•PAA’s sustainable cash flow in 2014 did not materially differ from reported DCF due to a number of offsetting items.
•PAA is not financing its distributions via issuance of new units or debt.
•The drop in the 2014 coverage ratio from the prior-year level was expected.
•Revised guidance lowers not only the rate of distribution growth but also implies no excess coverage in 2015; this could significantly increase in PAA’s risk profile.
Why the thumbs down, I didn't write the article, only reported it.
I own a considerable amount of PAA and with hold on for the ride!!
Sentiment: Strong Buy
I read it and believe it will be an "Option", similar to DRIP's.
Rather than pay cash, they'll pay out in shares of stock
AbbVie is spending $21 billion to acquire Pharmacyclics, which works out to $261.25 per share. But AbbVie is only buying half of Imbruvica because Johnson & Johnson (JNJ) already gets 50% of the drug's revenue. J&J acquired its interest in Imbruvica via a partnership signed with Pharmacyclics before the the drug was approved.
Both boards have signed off on AbbVie's (NYSE:ABBV) $21B surprise acquisition of Pharmacyclics (NASDAQ:PCYC), announced a short while ago amid speculation that Johnson & Johnson (NYSE:JNJ) (or, earlier, Novartis (NYSE:NVS)) would be the one to acquire the cancer biotech.
With the deal, AbbVie gets Pharmacyclics' blockbuster Imbruvica drug for hematologic malignancies -- which logged $548M in revenues in 2014 (Q4 earnings) and might go all the way to $5B/year. Imbruvica has received four indications in less than 15 months -- the latest being for Waldenström's Macroglobulinemia at the end of January.
I agree with your assessment.
Furthermore, why pay a $30 premium over the asking price?
I can't believe this was approved entirely by the board.
What about partner JNJ?
Remember what you just said at voting time.
People who make bad decisions lose their jobs.
This was a very bad decision and the board will pay.
•ABBV's acquisition of PCYC will create shareholder value in itself.
•ABBV investors have completely ignored this stock driving catalyst and the launch of Viekira Pak due to the fear of Humira facing biosimilars.
•However, AbbVie's CEO is confident that Humira will keep patent protection until the 2030s, meaning ABBV is now one of the cheapest big biotechs in the industry.
Not sure if I like it or not, what I don't like is I bought in @ $65
Will hold the course for now and hope for the best.
I agree with your assessment and did exactly what you did, but bought in at $65.
I'm not sure if the acquisition was a good deal. Appears they paid a Premium for it.
Good or bad I shall hold the course.
Nothing is certain, only death.
Although I own COP and many other oil equities, I would avoid all oils for now.
Too much uncertainness.
However if you can sleep at night w/o thinking about your equities it would be a good time to get your feet wet.
I wouldn't buy a stock just for the dividends...do some research.
That would be a disaster... I don't think they will cut the divi, ditto for CVX.
Last report by the ceo said they wouldn't cut, but they were cutting back on projects.
Exxon Mobil (NYSE:XOM) and Royal Dutch Shell (RDS.A, RDS.B) are likely to withstand the oil price collapse better than their rivals because they are closer to finishing expensive investment projects, according to a Reuters analysis.
Chevron (NYSE:CVX) and Total (NYSE:TOT), on the other hand, are both in the midst of large project spending cycles and will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing, Exxon and Shell appear to be most able to cover both spending and dividend payouts if oil prices stay at current prices, and are likely to be able to pick up bargain assets while the price collapse shakes out the sector.
Exxon and Shell also are ahead in terms of where their cash flow breaks even: According to analysts at Jefferies, both have 2015 breakevens of $75-$80/bbl, healthier than Chevron, BP and Eni's (NYSE:E) respective breakevens of $95, $100 and $120.
Sounds like you know your stuff on the tax issues.
Question: I bought KMP in 2014 and held.
Now I have KMI. Will this be considered a short term sell?
My 1099-B form on page 3 says "Noncovered tax lots - Basis NOT reported to the IRS.
Any info appreciated.
Thanx for the info.
I'm not too concerned about the divi. I don't believe they will cut it, I'm more concerned about the price. It doesn't do me any good if the "Interest" rate goes higher, my portfolio value goes down.
Shell been around forever and I will stick with them. If you don't sell you don't lose!