High expectations for Rayaldee are unwarranted. 4Kscore was over-hyped and turned out to be a big dud. Rayaldee will be more of the same. Lower your expectations, and you might be pleasantly surprised.... someday. However, I suspect that day is probably a long way off.
Cramer strikes (OUT) again! On 3/8 he rated MMP a "BUY, BUT, BUY" in response to a call-in question, and that was enough to destroy it. Cramer is THE KISS OF DEATH!
You make a particularly good point regarding not wanting to own an MLP inside a GP. That's my main reason for owning MMP and EPD rather than most other MLPs. I'd never buy anything just on the theory that Berkshire Hathaway might someday want to do a buyout, but my feelings wouldn't be hurt if Buffett thought highly enough of the company to buy it.
All it takes is lots of patience. It's easy to hold when you're getting paid to wait. It's also easy to trade when there's a well-defined range and the downside protection of a fat dividend. Once investor sentiment toward oils reverses itself, it won't be hard for BP to climb slowly to the mid/high 30's. Patience, patience, patience. Good things come to those who wait.
BP is one of those stocks that requires a lot of patience. If you're not happy with the 8% yield, then sell and look elsewhere for a better investment. BP is definitely NOT the best managed oil company out there, but 8% is still 8%. I use it to trade because the dividend provides a degree of safety. IF I collect a dividend along the way, so much the better.
BP will NOT cut the upcoming dividend. They'll cut other things first, but the dividend is sacred.
Highly doubtful, at best. The dividend is sacrosanct. The ~8% yield looks secure with management determined to maintain it. There's very little potential upside in the share price, but the dividend makes up for that. I'm a buyer at $30 and willing to be paid to wait.
I spent many years in the options business back in the 1960's, and the biggest lesson I learned was to never buy options. The business has changed radically since then, but the principle is still the same. The sellers, not the buyers, are usually the ones who make money.
KMI had the guts to take the bold step of slashing the distribution thereby increasing their chance of survival. That's why it has recovered somewhat. Debt is still a huge burden, so I'll stick with MMP and EPD exclusively. I bought both to collect the distributions and hold 'till I die. Between the two of them, I get about $32,000/yr. Not a fortune, but it keeps me fed.
EPD has a long way to go (percentage-wise) to catch up to MMP, but it's finally beginning to get some recognition on the street. MMP and EPD are still the only MLPs I'd go anywhere near. There's still a whole lot of risk in some of the other names, and I'm just not that big of a gambler. Stick with the top quality entities if you don't want to get burned. The relatively low yields are a testament to the high quality of the underlying partnerships and their managers.
I've been calling this a turn around for a few weeks now. I continue to believe the worst is over for oil and the MLPs. Most people won't recognize the reversal until it hits them right between their eyes. That's the nature of the game. I called the bottom of the overall market in January, 2009 when most people thought I had lost my mind. This isn't going to be any straight up move from here, but it looks to me as if the train has left the station. When MMP hits 80 and EPD hits 30, Cramer will be screaming BUY, BUY, BUY. Then, it's time to start thinking about selling. Cramer is THE KISS OF DEATH!
The run from 56 to 71 is huge and proves that investor sentiment has flipped from overwhelmingly negative to strongly positive. MMP is now above the 50- and 200-day moving averages. The consolidation between 55 and 70 has provided a terrific base from which to move higher. I'm looking for a move to around $78 (not in a straight line.) The anticipation of higher petroleum prices will precede the actual turnaround by 6 to 9 months, and unit prices are an excellent leading indicator. I recently received an advertising blurb that predicts that oil prices will soar. Titled "Middle East Oil Bomb To Blindside U.S. Investors," the author says that the Saudi's goal was to put the U.S. frackers out of business and then push oil to $150 or more. This is clearly the case, and the Saudis aren't making any secret of it. Their intention was obvious from the beginning. Oil prices may have turned around sooner than they wanted, but once a new bull market in oil starts, it will take on a life of its own.
I don't own any, but BP (yield ~8%) looks very interesting around $30-31.
Now UP $2.75 from the Dec. 31, 2015 close!!! What a difference a few weeks makes! If you're looking for $30, you'll see in the rear-view mirror. IMO, you'll see $90 before you see $30 (unless it splits, which I hope it doesn't.)
MMP is now above the highest close since early Sept, 2015. If it holds, I'd consider this a mini-breakout signal. A close above 71 is very bullish. As I've been saying, MMP continues to be the leader in the group. The relatively low yield says it all. The willingness to accept a much lower than average yield is a strong indication that the fundamentals are viewed as stronger than the rest of the group. In fact, the yield on MMP is about half of the average of the group. As the overall stock market shows signs of topping out, the MLP group may become a "safe-haven" of sorts based on its over-sold valuation. $78 is a very realistic price target from here, IMO.
$70 is a critical area that MMP needs to break through to get out of the current trading range. It's beginning to look as if the negative sentiment toward the MLP group is abating as oil looks for a bottom.