Interesting observation. I wonder if those set to receive the shares are already shorting them. I suggest keeping a watch on insider trades.
Sentiment: Strong Buy
The math seems to indicate a short term potential dilution effect of about 94 cents per share if 8 million shares are added. Or, other thoughts?
Medium to longer term I am still very bullish on EEP. I expect some shorting on todays announcement but believe it will bounce right back.
Yes, per nelson, also be careful that when reading distributions whether they are quoting US$ or Canadian$. I have seen both used in reports.
Until/unless the Keystone XL gets built, EEP is the only major oil pipeline in town. With oil prices down, rail transport is competition, but oil prices will rebound. And, the recent spate of rail transport accidents/spills is not good. When/if the XL gets built, it will not obviate the EEP Keystone pipeline, but will provide a competing alternate route for a portion of it. While I expect up and down quarters, I think the future is very strong for EEP. They have pipeline transport contracts in place for many years ahead.
Can anyone advise what the impact for EEP would be if the Keystone pipeline gets approved? A good or bad thing? Would it be in competition with EEP or do they get/hold a piece of it?
A new base may have been established and the stock may push for new highs in my opinion. I am a long time holder - not trying to pump it - just enjoying the dividends and nice overall yield. Has the right balance of reasonable safety and good return to suit my needs.
Oil prices will drop when Iran starts selling oil to the world market as a result of the colossally f'd-up agreement lifting sanctions in return for nothing. Iranians are cheering in the streets already. Any thoughts about potential EEP effects?
Zach's downgrade doesn't seem to hurt the share price. Earning over 7% dividend at these prices - looking good despite all the doom and gloom forecasted. Staying with EEP.
Despite all the warnings about tapering by the Fed, there is no way they can taper before the Mid-Term elections in 2014. The massive "stimulus" is the only glue holding this fake recovery together. Dems want to take the House and strengthen the Senate with this recovery BS. This remains a unique opportunity to increase equities value during this charade.
Agree. Continuing to acquire at these prices. Will be back in the 22-24 region again. But, no rush - riding the dividend is good. Especially, in a tax exempt or tax deferred IRA. Makes about a 7.5% equivalent annual dividend. Not bad, especially in the current equities environment.
This is a decent buying opportunity for POM in my opinion. I expect a shift toward utility dividend stocks as the Fed Stimulus reduction becomes real. POM should probably be in the low 20's and if you like a solid dividend, this is it.
The last paragraph is pretty much the only one that matters in the Form 8-K. Same dividend going forward.
Blah, blah ..... IRS... write offs...blah blah... "PHI expects to maintain the current level of its quarterly dividend notwithstanding the results of the updated assessment described above. "
Good comment about EPS vs. Dividend. I am hopeful to see a rate increase to help EPS, and the planned tariff charge to offset infrastructure improvement costs, which in turn should improve the net earnings overall. I agree that it could turn to crap very quickly, and appreciate the observations.
Several good things are happening for POM right now that don't seem to be accounted for in the analysts recommendations.
1. Union strike is likely averted. And, the contract provisions are not bad for POM earnings.
2. MDs Governor has proposed a tariff to Pepco Customers which would provide a pot of money for infrastructure improvements. What a windfall!
I think POM is a huge buy in this territory, especially with the general market turbulence expected in other equities for a while.
Sentiment: Strong Buy