Realistically, shorts are never in control of anything. There's only so much the shorts can depress a stock on their own. Longs can hold on forever. The opposite is true for the shorts. If big money comes in to bid up the price, the shorts can get clobbered. It always happens when they least expect it.
I would have expected MMP to be strong the day BEFORE the ex-dist date instead of the date OF the ex-dist. I've used the dividend-capture strategy many times, and this would have been an ideal situation to use it again. If I had been thinking clearly, I'd have bought a few thousand more yesterday on the weakness just to grab the distribution today. The money's just sitting there doing nothing. Oh, well.
Just heard that the Saudis cut the price of oil to the U.S. while increasing the price to Asian customers. They're clearly targeting the U.S. producers, knowing that they're barred from exporting. If our domestic production is reduced by cheaper Saudi oil, the need for the infrastructure to move our oil is also reduced. Like all things in this business, nothing is forever. Anyone want to buy my Tesla?
Wow! I'm in shock! I suspected that unitholders of MMP were a much more sophisticated lot, but this was totally unexpected. Most message boards are nothing more than forums for bashing and political propagandizing. The longs bashing the shorts and shorts bashing the longs, the conservatives bashing the progressives would be the norm on most boards, but an "official" welcome is like a breath of fresh air. I've actually sold stocks because of the nasty attitudes and lack of basic intelligence of the majority of the posters. I figure that if my fellow shareholders are of such low caliber, I don't want to own that stock. I guess MLP owners are different. Many thanks for the welcome. This message board gave me the confidence to get in, and I now own 8000 units.
Thinly traded....yes. Always remember to use limit orders only! Never, never, NEVER enter a market order under any circumstances, unless you don't mind getting royally screwed. I use that rule with everything. It's MY money, so I'll set the price. (That's how I bought MMP at $67 recently.)
I like the big bid/ask spreads like MMP. I only use limit orders, so I get to call the shots. I NEVER, NEVER use market orders. I buy (or sell) at MY price, or I don't buy at all.
When all is said and done, you have exactly what you had before the split. Double the number of units each paying half the distribution. Nothing has changed. Nothing! EPD was a solid investment before the split, and it's still a solid investment today. People on the MMP message board are lobbying for a split just because EPD split. I own very substantial amounts of both MMP (8000) and EPD (6000), and splits mean absolutely nothing to me.
You're right! There were several calls for a split, and I repeatedly argued that splits are generally useless. The distribution has remained exactly the same except for the split adjustment. EPD continues to perform exactly in line with forecasts, and I don't see that changing. It's a very predictable business with set-price contracts. As long as crude and products flow, they make money. My only concern is that there has been a tremendous proliferation of MLPs, and the group has been attracting more and more investor interest. I came late to the party, but I'm confident that MLPs will continue to thrive as long as domestic oil production continues to increase at the present pace. If a sudden drop in energy usage/demand creates a surplus in midstream capacity, the whole group will likely collapse with a sickening thud. The U.S. energy boom seems to have a long way to go as long as the economy stays reasonably robust. The housing boom of the last decade should have taught everyone that overbuilding eventually leads to disaster. Overbuiding of midstream capacity would be equally disastrous. I keep being reminded of the broadband debacle we now know as ENRON!
OPK is crawling higher in very orderly fashion. It has held firm at $8 many times, and it looks like it might finally be ready to establish a definite trend upwards. It's only a matter of time before the huge concentration of shares in very strong hands takes its toll on the shorts. It won't take much to create a very tight supply. Dr. Frost has been extremely adept at accumulating a gigantic position without causing a run-up that would cost him a lot of money. He refuses to overpay, and that's why he'll make a ton of money on this. Other investors should take a lesson from his careful, determined, disciplined approach to investing. He might have started a short squeeze, but that would have been counter-productive to his strategy.
Blowout earnings, but the reaction has been more muted than I expected. IMHO, this is a chance to buy at a bargain. Anything under $82 will result in all smiles by New Year. Last chance to jump onboard for a ride to $90 and beyond.
How do we vote out a bunch of West Africans who happen to be unfortunate enough to live there? Guns kill over a hundred times as many people each and every day in the U.S. as Ebola will kill in a hundred years. Flu kills over 3000 people every year in the U.S. Better to vote OUT those who want to eliminate health care for 30-million people.
Careful laboratory analysis shows that McDonald's food is made out of unknown molecular structures that are impossible to analyze with instruments designed by humans. Therefore, it has to be assumed that it is of extraterrestrial origin. In other words, it's space poop.
Click on Press Releases. It's 2 up from Message Boards. You'll find all the info right there on Wed October 22. Look for the headline "Magellan Midstream Increases Quarterly Cash Distribution to...."
"Give a man a fish, and he'll eat for a day. Teach a man how to fish, and he'll eat for a lifetime." Have you ever heard that saying? I'm trying to teach you how to fish. In other words, I'm trying to show you how to find the information for so you can find it for yourself in the future. We're trying to enlighten you to make you a better investor.
A look at the 1-year chart shows that OPK had only a brief foray below $8 in early February. Since then, the closing price has held firmly above $8. I can only find 3 occasions when it broke $8 intraday, but it always managed to close above that level. A decisive break below $8 would be a very bad sign technically, but it looks more as if an eventual breakout above $10 would clear the way for substantially higher prices. Given the huge tightly held amount of shares in the hands of a few individuals and the large outstanding short position, it seems to me that OPK could be in store some very big rewards for the patient longs.
"...in a few months..." turned out to be wrong. It took more like a few days or, in some cases, a few hours. Margin calls probably went flying out to the shorts on the way up, too.
I've been trying to figure out how to get Yahoo to correct the EPD chart. They show 2 splits, on Aug 21 and again on Aug 22, which makes the long term charts useless. Does anyone know how to contact Yahoo to try to get them to correct their mistake? Thanks.
The dividend (in this case it's called a distribution) is the money the company (partnership) distributes to shareholders (unitholders) quarterly (every 3 months) out of money earned from operations. That's about as simple an explanation I can think of offhand. If you need further elucidation, ask your mommy.