Divi, I know you bought SPH very high. at these prices I would double up if I were you, especially if it goes below 41 and it has a stable dividend to boot. I think it will be in the 50s once they straighten out the Inergy purchase. They have been struggling the last 2 years, but their mgmt is good. GLTY
I have learned that some of these analysts are more wrong than right. And some of them are paid to say what they say. For these reasons I don't pay attention to their 'wisdom'. GL
I may round off to the nearst 000 if it goes to 23. I really don't see much risk here because their DCF seems to cover the $ 2.74 distribution. At this point it's a 12% yield. My concern is their cost of oil and whether they did any hedging when the price was up in the 80s or 90. If that's the case they will have some short term pains when the refining starts, unless they can keep up the price of refinined products and maintain a decent spread. We could have a bumpy ride in 2015, who knows? Anyway, this is a time for celebrating. Hooray for CLMT, and may the Gods of WS be on our side! GLTA
Because they have too much going for them. I saw this price way back when their going was tough. I don't think you will see 19-20 in your lifetime. But then, who am I, an 800 pound gorilla. Ir may dip a bit more maybe 22. but IMO that's it.
I couldn't agree with you more. It's the lemming mentality. If this goes to 23 I will be adding. GLTA
They are very competent, at making $$ for themselves with outlandish fees and incentives. This outfit doesn't have a chance unless some hedge fund kicks out this management. I wish I had known about the external mgmt when I bought. I fear MCC will disappear by slow death, and it's happening.
My take on the market action is that if oil keeps on sliding there will be less demand for storage and transportation, which would impact on CEQP/CMLP operations. Whether the oil slide would destroy these 2 outfits is anybody's guess, but considering the trend, I would not be anxious to catch a falling knife at this point. I will revisit their situation if oil goes below $60. GLTA
I owned CEQP when it was Inergy, and before they sold their propane unit to SPH. I made a 20% gain on the ERGY/SPH transaction. I have been following CEQP and not knowing much about it, I have seen it slide from 15 to 8. I get the feeling that their deals with SPH and CLMP have not gone in their favor, or I may be missing something here. Anyway, GL.
Divi, you have it backwards. Cheaper gas or diesel means more consumption. So, more refining needed. Since CLMT makes their money on the spread (not the price of oil), get it? I'm picking up more shares if it goes below 24, and that's a nice yield to have at $2.74. GL and may the GODS of Wall Street be good to you.;
Furthermore, as we all know when buying gas, as the price of oil goes up, the cost of gas rises immediately if not sooner. When the price of oil goes down the cost of gas stays up there as long as possible, only to go down when folks stop buying. Gawwwwd, I love this World.
You don't have to be a genius to know what they will say "No merit to the lawsuits and we will prevail". If the lawsuits and bad loans kill this goose, they will start another goose, and more IPOs and SPOs. On and on..........
From the little I saw in the last QTR, they are raking in about 20% off the top (and you take all the risk!).
External mgmt getting the filet mignon, while the rest of us take the soup bones. If the price gets a bounce I will unload.
Funny you should mention buying at 18. I almost did the same and missed the boat. They started with a $2.00 div. back then. I'm a bit disappointed with the integration of the Inergy purchase so far. I expected the pps to go into the 50s. I may be impatient here, but time will tell. GL