Many "workers" are shareholders, either directly or through IRA, 401k, etc.. plans. Even public sector unionized employees are shareholders.
Forced sale of KMP units which created an enormous cap gain and ordinary income recapture. Clearly cap gains are good but the recapture (deferred taxes) in one lump sum is not so good.
I agree with the govt protection angle. At the time of the MSA (1997?), I did not at first appreciate the brilliance of it. I thought they were consorting with the enemy but then once I understood the MSA, I realized the genius of it. It made the tobacco industry partners with the 46 states! Now those states would be beholden to the tobacco cash flow and would protect it! Sure they would make token efforts at cutting smoking rates but the reality is that they wanted people to puff away. It was not long before various states sold bonds secured by projected MSA cash flows. Oh to have been a fly on the wall when whoever it was first conceived of the MSA; whoever it was must have jumped up and yelled "Eureka!"
I don't know if it's short covering but I am in awe of MO's steady move up. P/E 20, it's amazing for a tobacco company. I'm not complaining, been a shareholder since '95 and I recall P/E being
Likewise, bought another 200 this morning. I had a GTC order that I placed awhile ago and it popped ~32.60.
Dividends vs reduction of shares outstanding. My NE is in a retirement account so I prefer higher dividends that I can choose to reinvest in more NE if I want to do so. If NE does the purchasing with money that could have come to me as dividends, then I no longer have the choice of what to do. As this is in a tax-deferred retirement account, current taxes are of no concern .
Don't feel bad, I have about 4600 @ $13.70 or so accumulated over the years. I just reinvest the dividends and leave it alone.
I guarantee that PGN will be bought for $100/sh tomorrow because I just sold all of mine at 5.23. I also sold a little of my NE so that should skyrocket as well. Just letting you all know :-)
Not much going on here for the last year or so. .95 book but 1.35 tangible book. Time to move on. I put in an order to sell my small stake so the stock should soar about an hour or so after my order gets filled.
Be careful with the "woodstove" treatment. If your UBTI is = $1000, then your IRA owes taxes. Schwab (and others most likely) will handle this for you if you send them your K-1.