IMO, the run happened because they just did an offering in the form of a preferred (*instead* of common). So I think it will hold for awhile. If you disagree, sell.
Been holding my FLY - last buy I made was $13.15 last August but the divi was lower back then. Starting to look juicy at 7% here. Thinking of adding soon. I know several of you recently sold - I'm just a sucker for value, even if management has made mistakes. Often that's what creates the value in PPS - I think that's the case here. Overall I think management can work their way out of the hole, and in the meantime I'll collect 7%. The question is, do we visit the 52-week low, even with a higher divi and overall higher market?
Yes, I have to say this has been a good investment for me. I bought in the $10s-$11s in 2010-2011, and so far have a total return of 80%. Not bad for a little under-the-radar CEF.
I think it had a lot to do with their focus on reducing average fleet age on the call. That's been a concern and they appear to be addressing it head-on. That and the comments on increasing average lease rates, 100% fleet utilization, $400M of unrestricted cash with intent to use it to grow, lower operational costs, lower interest rates, leverage ratio currently at
Don't agree about accurately measurable value. Or at least that it has much to do with PPS. We've been trading at a significant discount to book for years.
Serious answer to your serious question. I do not believe I can reinvest the money as well as EPD management can. So not only do I not want them to increase the distribution any faster, I let them keep mine and reinvest it for me.
If you think you can do better, you should sell all of your units right now and go do that. But let me guess - you can't do that because your gain is so large that you can't afford to take the hit on taxes. Those are some mighty fine golden handcuffs you are sporting there.
Then hit the bid and find something that better meets your needs. Whining about it here year in and year out has done what for you?
Same - love this company and its partner-friendly management. I bought about 1/2 of my EPD shares in 2008-09 on the whooshes down to the $16-21 range. The remainder are converted DEP shares that I bought in the $15s. I sold half of the EPD at $34, to take out my initial investment in both entities. I didn't need the income so I then put the remaining stake in the DRIP and let it ride, where its value has since doubled again.
This one investment has more than made up for a lot of lessons I've learned the hard way. It has cured me of most of my early trading foibles, although I do admit to still being somewhat of a yield chaser, because sometimes they do end up working out... Sometimes.
I have mixed feelings about it. I certainly like the warm, fuzzy concept of dampening out the volatility of unit prices. But if I look back at my ledger what I find is that I've been fortunate, so far, to use SPOs to advantage in my MLP portfolio, using those dips to reinvest distributions at a discount.
IMO, best thing they could do is raise capital ATM and then set up a true DRIP program that comes with a 5% discounted reinvestment price to incentivize existing holders to auto-reinvest their distributions. This would be sort of like having a small SPO every month without the huge dip, with partners benefitting by getting to reinvest at a discount. Then, additional capital raises would be done ATM, also without a huge dip. Best of both worlds.
Just dreaming. Doubtful they would/could do a DRIP with the monthly distribution schedule. The transaction costs would probably make that too expensive on their end.
Yes it's one month, not two - I corrected myself immediately after the first post, but it got lost in the noise...too bad you can't edit posts here. Anyway, glad I'm not the only one who sees this issue.
I'm sure it is "cleaner" in some ways for them to start the one month payout in January. That way, partners get one calendar year of payout all in the same calendar year for 2013 and 2014 forward. But yeah, one month of deferred payout is the result.
I see both posts now. Thanks for confirming the one month gap in cumulative payout that I was describing. To the others - although I called it "sneaky", my intent was primarily to inform, not to bash. I'm waaayyy long on BBEP - now my largest position after the recent PPS runup.
I am a longterm holder. My math begins the first day after the last quarterly distribution they paid - i.e. the last time I got paid. The *cumulative* distribution payment is now permanently offset by one month from what it would have been if they had stuck with quarterly payments. It's pretty simple math - not much to check.
Whatever, it's only $0.16, But I'm just surprised that nobody had mentioned it yet. Even more surprised at the backlash here after I pointed it out.
To be completely clear, so do I. Greatly. I just wanted to point out the cash flow issue. As of Feb 15, 2014, we will all have collected on month less of distribution than we would have under the quarterly model.
Unbelievable? I find your notion that they normally "advance" us one month of DCF in the quarterly payment unbelievable. Have you got proof of that? Would that not violate all kinds of SEC and/or IRS regs?
In 2013 we got four quarterly payments for DCF earned between Nov 15 '12 and Nov 15 '13. In 2014, we will get 12 monthly payments for DCF earned between Dec 15 '13 and Dec 15 ' 14. There is a one month hole there (Nov 15 '13 - Dec 15 '13). Explain it, please.
We have permanently floated them the Nov 15 - Dec 15 2013 DCF, plain and simple. I'm not suggesting anything malicious, but it's certainly turned out to be a cash flow trick in their favor. I agree with pba69 - I think it's why we are getting a $.015 bump right now - they can use this additional retained DCF give us faster increases, at least for awhile.
...that in switching to the monthly payout, they have held back the equivalent of two months of distributions? What they should have done is paid us our quarterly distribution of .48xx in January and switched over to monthly starting in Feb. The way they did the switchover seems like a sneaky way to get out of paying us for November and December. Perhaps this "missing" $.33 is where they get the ability to bump up to a 1.5 cents raise per quarter?
I added some $62.90s at the close yesterday, buying back the units I'd sold in May for $70.75. I'm happy to pocket the difference and begin building larger position in MWE if it keeps drifting lower.