Saw the preferred a few minutes ago? Sorry don't know this company. Will it be around or is it shaky? I do want to buy some of the preferreds, if you have a favorable opinion. Thanks
How do I sell XLU short. Seriously. I can hold for a couple of years. THANKS for your help!!! Tested it with options but the decay reduces the breakeven price too much.
That makes the best sense. Wonder how debt works in this case. Normal companies get debt, pay 5% and make 20% to offset the 5%. Trying to understand MLPs ... Do MLPs get debt, spend it on drilling, pay out the profits as distributions and never brother to pay off the debt? Kinda like a ponzi scheme? How does MLP debt work?
I would stop distributions.USE THAT MONEY TO BUY COMPETITORS ASSETS THAT ARE CHEAP!
Also with my personal money, I would buy a ton of shares cheap because I know the price will come roaring back when distributions resume. That's how the rich get richer.
Another option could be Atlas. Check the video "Cooperman: Adding to Atlas Energy" on Cnbc, if you know who Cooperman is. If I could understand what he was saying I would know what to do. The problem is these companies have multiple companies formed to deal in downstream, midstream and upstream. Then they scramble ownership in each among the companies. So which to buy is not clear.
Don't worry about it. The price of oil will go up to the price the Saudis stated during their 2015 budget process. In the 70's by year-end. They still control oil prices.
If Raymond James really knew oil, they would forecast the approximate idle rigs by nation and the approximate reduced output by approximate date and tell us when the supply - demand ratio would come into balance.
per Raymond James:
"An analyst with Raymond James expects 850 rigs to be idled this year as companies wait for crude prices to rise again." 24/7 Wall St.
Be ready to buy when good MLPs suspend.
That will normalize the supply and demand ratio and oil will good back up. Simple. It is all about depletion. Look it up. If you are as clever as I think you are. How long does the average well produce?
I was poking around looking at distribution history for MLPs. One MLP (probably not LINN) had a chart that showed the distribution was suspended for 3-5? months during the "Great Recession" and then picked up again. The stock plummeted then. But flew up when they resumed. Have you stumbled across that chart or a similar one? Is that is a common occurrence for MLPs.
Thanks for the feedback. One investor guru, I think Cooperman, said a company like Atlas will not go under, rather they would be sold in a crisis. Do you feel that is true? Because debt like this preferred usually goes to the buyer. IPO 9/25/14
Hey Jrfillion, You want in on a good deal on preferreds, wait till the feds do something with rates. Preferreds usually dive then come back up just like this one. Next good time to buy preferreds is around rate hike time.
They just released their $25 preferred. It is ARPpD. It is now selling for $19.20 which yields over 11%. If the company gets sold the prospectus says they redeem at $25.
You get 11% plus hopefully it goes back to $25 once oil starts going up. It is rising now.
Any thoughts? Thanks!
It's simple. I'll answer with a Question: With the increasing list of rigs shutting down, when will the million gallon daily surplus disappear? A few here; a few there add up.
The answer: Soon. Then the prices will go to the the level that the Saudis say it will.
If that doesn't happen fast enough, then the depletion and drilling slow down will balance the supply.
Here is my expert answer :-) Buy on fear. Sell when everyone is patting themselves on the back about how great they are at picking stocks. Buy low; sell high. Everything goes in cycles. I personally made up all those famous quotes ;-)