Great! Another buying opportunity for those who missed the boat. JBLU headed for the mid-20's this year (as long as oil doesn't soar due to geopolitical events.)
I hope NOT!!! Look what happened to EPD. It was around $80 at the time of the split. That's $40 adjusted for the split. It's now hovering around $32.50 and can't gain traction. The split did absolutely nothing to help the price, and it shouldn't. Splits are a total waste of time and money. The commission to sell is effectively doubled. DOUBLED! Why do you want to have to pay double to sell your units? Are you crazy? If you want to be really stupid, let's ask for a 5-for-1 split. That way the commission to sell would be quintupled. A split gives you double the number of units that are each worth exactly half what they were pre-split. What have you gained? NOTHING. NADA. ZILCH. Splits are for companies that think their share/unit holders are idiots. No one who owned EPD before the split is happy about the outcome of the split. MMP won't do any better. This thing is going up with or without a split. All a split will do is make the brokers a little richer at the expense of the unit-holders who want to sell at some time in the future. Please take your split idea and go somewhere else. If you wanted a split, you should have bought oil. They split the price to half of what it was. Did cutting the price in half bring in more buyers?
This "stock" is actually a Limited Partnership. The "shares" are really units. The "dividends" are really distributions. Otherwise, you got it right. I believe the price will ultimately go a whole lot higher than $40 and continue to increase the distribution slowly but steadily. The recent volatility was brought on by the price of oil, but that will likely abate in the future. EPD is classified as a "Till-death-do-us-part" kind of investment for tax purposes. Buy it for the very long term, and make your heirs very happy. Don't sell it.... just die with it, and let your heirs sell it at a stepped-up cost basis after you're gone. They'll have a big party to celebrate your passing. Boa sorte.
As far as I know, Soros doesn't buy whole companies the way Warren Buffett does. I'm a little surprised that JBLU has held up well in the aftermath of the Germanwings tragedy, the the news media has been good about repeatedly saying that low cost airlines are no less safe than the biggies. (BTW, one of the theories for the cause of the crash is that something, perhaps a camera, might have jammed the side-stick controller thereby preventing the crew from pulling back to raise the nose.) I've flown planes with "joysticks", and I can see how it might be possible. That's one of the reasons most airlines prohibit crews from bringing cameras into the flight deck. It's also one reason why Boeing jockeys don't like flying the Airbus. Germanwings planes get the same treatment as Lufthansa planes by the same mechanics. The FAA safety record of JBLU has been exemplary, unlike that of LUV which has had numerous violations and a non-fatal crash at LGA recently. IMO, JBLU could easily visit the mid-20s if the price of oil remains around the present level. However, I expect oil to gradually work its way higher later this year or early next.
I have been consistently very positive on MMP, and continue to believe it is one of the best ways to play the inevitable recovery in U.S. domestic oil production. As I've said many times, they're in the right place at the right time. I continue to believe that the best names in the business are MMP and EPT. They're both financially strong and have good track records. The volatility of recent months has provided many good buying opportunities, but none were as good as Oct. 13/14, 2014. I keep preaching patience, patience, patience. The talking heads are all scrambling to get on board before the train leaves the station. My only negative concern is Cramer! If he likes it, I'm worried.
Boone is not alone in his opinion that oil is looking for a bottom here. History has a way of repeating itself, and oil has a way of going through these cycles from time to time. Whenever oil goes too low to be sustainable, it recovers. When it goes to high to be sustainable, it falls off a cliff. As an energy source, oil is still crucial. My car runs on oil (gasoline). My house is heated with oil. The plane that I fly in runs on jet-A. Anyone who thinks the latest drop in oil will last forever is dreaming. IMO, the best way to play the coming recovery is the MLPs. They're essential no matter what happens to the price of oil in the very short run. Overall sentiment is overwhelmingly negative. That's the best argument I know of for buying oil. It's on sale right here. The sale won't last forever. By the time everyone realizes the sale is over, it's too late to participate in the bargain. Boone is being conservative when he says $70 oil will be with us again. He's too smart and too rich to bet against him. The key is patience. Don't expect miracles to happen overnight.... BUT THEY COULD!
I don't own any MLPs in my IRA or Roth IRA. I can't see the point of owning a tax-sheltered investment in a tax-sheltered account. It just doesn't seem to make sense. Even more so if it might create a tax complication. I have 8000 MMP and 4000+ EPD and 2000 ETP, and I'm expecting my accountant to take me out and shoot me this year. (I'm sure he'll at least give me some dirty looks.)
No buyout. Not today. I hope not soon. There's still way too much room for OPK to move higher. Maybe in a few years, when it gets to triple digits, a buyout would be welcome. Not now.
Cramer has been recommending buying MMP. That's about as bad as the news on MMP can possibly get. I'm inclined to wait until he recommends selling it before doing any buying. Whatever Cramer recommends, just do the opposite if you want to make any money. He's so wrong so often that he makes it really easy.
I presently own 8000 units of MMP. Cramer's recommendation makes me extremely nervous. He's a professional tout. A buffoon. A fraud. An idiot. I like MMP, but hate Cramer. Anyone who follows his advice is courting financial disaster in a very big way. I'd be a lot more sanguine if he recommended selling it.
You put it much more politely than I would have. Your kind words about Cramer are way too diplomatic than he deserves on his best day. He's a professional tout. A buffoon. A fraud. Yahoo won't let me use the language I prefer, but I think you get the picture. He's a total &*%#@*&%&%#@~@#$%^&*(
If you've bailed out of energy, you are about to regret that move. Oil is getting near a bottom and will recover a substantial amount of the recent decline before year-end. I'm sticking to the strongest MLP names; MMP and EPD. They're far less negatively impacted than the E&P names. Energy has not gone away. Have you stopped driving your car? Have you noticed that gasoline has jumped significantly lately? I just had to pay about 30-cents more than I paid for gas a month ago. Don't get irrational about the whole thing. In investing, you have to learn to take the bad with the good. Patience will win over panic-and-run. Take a deep breath and relax.
ETP has just done what seems typical of the pipes... swoon and then recover as if nothing happened. Don't try to over-analyze these things by looking for rational reasons for every down or up move. If you have confidence in the financial strength of the company (partnership), then use the big drops in price to add units. If you don't feel comfortable that the company will be a survivor, then use a rally to exit the position and look for a better situation. For my money, there are really only two names that I have a lot of confidence in. Those are MMP and EPD. I use ETP just as a trading vehicle, and it has served me very well. My big money is still in MMP (8000 units) with a lesser amount (4000 units) in EPD (4000 units).