Apple would have gone up regardless of splits. AAPL went to over $700 before the split. Lack of a split hasn't seemed to hurt REGN or a whole host of other high dollar value stocks. Those who use brokers that charge a per share commission will have to pay double to sell. The "little guy" buys stocks based on a dollar amount, not number of shares. The odd-lot differential and premium/discount disappeared back in the 1970s, so there's no benefit to being able to buy 100-share lots. There's no longer any benefit to anyone when a stock splits. There's an unnecessary cost to the company. It might provide a "feel-good moment" to some shareholders, but there's no economic gain. Even though the total value of all stocks is many times what it was in past years, the number of splits is far lower. In fact, there are now more reverse splits than conventional splits. The 200 shares of AMGN that I bought in 1987 are now represented by 9600 shares, and I'm perfectly happy to leave it right there. If you're thinking about splits, you're living in the past. When AMGN goes over $2000, I might be a little more amenable.
The PAA leak is having a surprisingly negligible effect on the other MLPs ...... so far. I wonder what kind of insurance coverage is in place to offset damage from these events. Even though the current PAA problem is inconsequential compared with the Exxon Veldez and the BP blowout in the gulf, the lingering bad publicity could hang over the industry for awhile. It's going to depend on how PAA and their insurance companies handles the situation.
If it's not interest rates, it's pipeline leaks. The PAA leak will be a drag on the whole sector for at least a few days if not weeks. Hopefully, this event will make the rest of the players sit up and take notice. I hope PAA has good insurance coverage; I'd hate to see them go bankrupt.
BP has never fully recovered and is still the pariah of the oil industry. That stigma will stick with the company forever. While this situation is not comparable, it's still very serious. I expect all pipelines to take a big hit today and probably into next week. The Exxon Valdez is still very much the poster child of tanker disasters some 26 years after the event. It would be dangerously naive to think this will be forgotten in a few days or even weeks. I doubt that PAA will go bankrupt, but the damage will be substantial. The big question is insurance and what is covered.
I spent several years in the options business back in the 1960's, so I have a little knowledge of what it's about. The main drawback to trying to do what you're thinking is the tax problem.... as jsore points out. I'm inclined to leave well enough alone. Once the group gets moving again, you'll be happy you didn't muddy the water with options. MLPs are meant to be held 'till death do you part.
MMP has had a particularly hard time making any headway in this market. It appears that a hike in interest rates is on the back burner for awhile longer. Oil has been holding up fairly well but is still well below the highs of last year. I take both to be positives for MMP, but the yo yo ups and downs continue. My guess is that this might go for awhile longer, but a breakout on the upside appears the more likely eventual scenario. It seems everyone and his brother is recommending MMP as a "buy", but no one is buying..... yet.
Oh, well.... Back to sleep.
I hope someone is ready with a video recorder to catch Dr. Frost doing somersaults when OPK hits $18.
Stocks that should be held forever and never sold are few and far between. OPK is still a very young company with enormous growth potential and might well be such a stock. It will all depend on the management skills that emerge after Dr. Frost is gone.
Trying to "time" OPK is a fools' game. Timing means nothing; it's "time IN" that will make you money. Patience is the name of the game. Any corrections have been small and brief. That doesn't mean it's wrong to have open buy orders in under the market just in case. Now that OPK has gained an institutional following, we could see more volatility which could provide good buying opportunities. The most important factor is that the biggest holder is never a seller, even on the worst of days.
When I first mentioned Opko and 4Kscore to my doctor, he said he had never heard of either one. His only comment was that it would never amount to anything unless the company can get Medicare/insurance coverage. He must have then gone home and done some homework on the subject. He is now an Opko shareholder and talks about 4Kscore as if he invented it, and it's going to revolutionize medical science and prostate cancer detection forever. If OPK doesn't make him money, I'll be afraid to ever go back to him. He bought AMGN in 1987 on my recommendation, and he is now one very wealthy dude. My only concern is that he's now talking about retiring very soon.
P.S. I've had 2 biopsies and both were a waste of time and a huge pain. Medicare coverage can't come soon enough for me.
Sentiment: Strong Buy
You're exactly correct. This is what I've been saying for many months, but you've got more details. It was impossible that the stock could keep running with no short squeeze. The only possible reason was a hedged position that made them net long. Most excellent post!
Be careful. I was chastised, criticized, mocked, and ridiculed for even mentioning triple digits. If $100 is considered impossible, then OPK is probably way overpriced at the current price. It's all about expectations and future possibilities. If you believe in OPK at $15, it's easy to believe in it at par. When OPK was $2, how many people could see it going to $15? Even Dr. Frost would have been scratching his head.
Shorts can also go to the ER if they're feeling suicidal. The shrinks in the emergency room will put them in restraints until the feeling passes.
I don't use Schwab, but I was under the distinct impression that Schwab (also Fidelity, TDAmeritrade, and several other brokerages) were full participants in the 5% DRIP discount program. Vanguard is not and never has been. The current DRIP price (after 5% discount) was $32.3922. The average price for the day was $34.0970. Interestingly, the current DRIP is the lowest it has been in many quarters, meaning the unit price has declined while the distribution has increased.
Everyone should be aware that holding your shares directly through the transfer agent will be charged a FEE of $15 PLUS a commission of 12¢ per unit to sell or buy. This does not apply to the DRIP (EPD pays the fee for that.) To avoid the outrageous fees and commissions, you can transfer your units to your regular broker by instructing your broker to do a DRS (direct registration service) transfer from Wells Fargo to your broker. My broker charges nothing, nada, zip for doing that. It's free..... both ways, but it does take some time. If you're planning on selling, leave about 2 weeks to move the units. Your broker will notify you when they receive your units from Wells Fargo. Remember.... the request has to go through your broker, not Wells Fargo. Your broker then has to deal with Wells Fargo. For security reasons, the transfer has to go to an account with the same name, address and Social Security number. Seems logical.
I'm not predicting triple digits. I wrote that it wouldn't surprise me. There's a difference. Keep in mind that a huge chunk of stock is locked up in very strong hands. At this point, everything is speculation. The one thing we now know for sure is that 18 is the magic number.
GE sold finance to get out from under the government oversight that resulted from the debacle of 2008/9. They were not allowed to use any of the earnings of the finance division to increase the dividend. It was a bad situation that would have dragged on for many years to come. They sold NBCUniversal simply because it didn't fit into the overall business. Don't put all the blame on Immelt. It was Welch who built the credit/finance part of the business which turned out to be a nightmare for Immelt. Welch was a huge self-promoter who took all the credit and none of the blame for the debacle he created. It took Warren Buffett and the Feds to bail GE out of its mess which nearly brought the whole company down. I'm not thrilled with Immelt, but I don't blame him nearly as much as I blame Welch. I just think Immelt was dealt a very bad hand that he has played reasonably well. The rest of the Board is incompetent. Andrea Jung.... she destroyed Avon Products, and now she's doing it with GE. How does she fit in, except that she's very attractive and happens to be a woman? GE needs to clean house and bring in a whole new Board of Directors. It's time. New business model, new BOD. The GE Sikorsky S-76 helicopters fly back and forth all day over my house from HQ to Westchester County Airport to use the GE "Air Force" that is based there. GE owns one of the biggest corporate aviation departments in the country, and the shareholders are paying for it.
Never. I use Wells Fargo because my regular broker does not participate in the 5% discount program. I can go into the account the morning following the pay date, and the details are all there. I suspect that Fidelity, Schwab, TDAmeritrade, et. al., all use Wells Fargo which just happens to be the transfer agent for EPD. Wells Fargo does not charge anything to handle the DRIP program; the fees are paid by EPD. Wells Fargo does charge a huge commission plus a small fee if you sell the units through them. You can eliminate the fee and the commission by having your units transferred to your regular broker before selling them. You simply request a DRS (direct registration service) transfer of your units to your broker. I use Vanguard, which charges me no commission or fee to buy or sell. I get all the benefit of the 5% discount and still get to use my commission-free broker to buy and sell. Nice deal! Excellent service. I'm happy. I'm even happier that EPD was finally up today, for a change!
Development stage pharmas like Opko can go for many years without showing positive earnings. It's all about building a strong foundation of viable products and then finding the right markets for them. When the profits finally come, it might only take a very few to bring a flood. No one should expect that many, or even most, potential products will be successful. There are bound to be some that won't make it, but that's all part of the game. I wouldn't be at all surprised to see Opko go to triple digits without ever showing a profit. It's all about anticipation and expectation that drives stock prices, especially in this industry. That's where the shorts had it all wrong from the beginning.
The big open question is insurance reimbursement for the 4Kscore test. As soon as Medicare covers it, the sky's the limit. After that, the choice between a biopsy vs. 4Kscore is a no-brainer.