That's patently untrue. One of the problems is that this administration has been overly business-friendly on every front. It is run by the same Wall Street insiders who have run economic policy under both Repubs and Dems forever. Big money rules. Both sides have gone so far in opposite directions that nothing will get done until the moderates take back the power. The extremists on the right, egged on by Fox News, are so far out of touch that they've made it impossible for them to take back the White House. The more Fox pushes to the right, the easier it will be for a Dem to get elected. Meanwhile, the middle class, mostly moderates, have few choices but to go with the very limited options available. A moderate "blue state" Repub would be the most viable candidate and the best for the country. And, it has to be someone who will throw the Wall Street insiders out of running the government.
Unfortunately, I see the next "catalyst" as being a rise in interest rates, which is a big negative for "income" investments like MMP. By artificially maintaining rates at an absurdly low level for so long, the Fed has set the stage for a dramatic plunge in the value of the underlying investments. Those who thought it was safe to hide their money in bonds are about to get a very rude shock. Stocks/units like MMP are essentially surrogates for bonds with the exception that they offered some growth potential along with steady income. The recent recovery in the price of oil won't be enough to bring new money into MLPs when interest rates are soaring. Even increasing the distribution won't turn this ship around. The Fed needs to be very careful about how they let rates rise unless they want to cause a massive sell-off of biblical proportions. Rates were held way too low for way too long.
Primecap has been a big buyer. They manage 3 different Vanguard funds that are all top performers plus they manage 3 of their own funds under the Primecay Odyssey label.
For OPK to be practically unchanged today, it's the almost the same as being up about $2 given what the rest of the market is doing. This is just one more sign of the amazing underlying strength of Opko. This stock is a screaming "BUY"...... right here!
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.