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Cut by 75%. I'm good. My estimates => not so good. Yield at 14.60 is 3.4%.
mathjak: I don't think it's a particularly good trade though. I think you should stick with Exxon. The problem with making a successful trade is that one starts thinking they have a hot hand and they start buying all kinds of stuff. Your XOM trade was studly.
what happens if any of the MLP decides to stop being a MLP and become more of a traditional energy company?
Well, for starters they would need to put it before the partners in a vote. The board of directors can't make such a drastic move on their own. Then I assume they would incorporate, which offers no benefits over a partnership. These are very capital intensive structures and they already take on debt and issue equity shares in similar manners to corporations (yes, there are some minor differences...)
But many of the limited partners invest in these specifically because of the MLP structure and want to keep the tax structure as is. Assuming everything is equal, the new corporation would still be a very capital intensive entity but would now have an additional corporate income tax expense to worry about (remember, partnerships don't pay taxes - they pass them through to the partners). So what benefit do you imagine there would be by converting to a corporation?
Well, the KMI divi cut has to be be close to a temporary bottom in the sector. This is monumental. A lot of lemmings may have been slaughtered enough by now. They had a great and trusting retail following.
Cut by 75%. I'm good. My estimates => not so good. Yield at 14.60 is 3.4%.
mathjak: I don't think it's a particularly good trade though. I think you should stick with Exxon. The problem with making a successful trade is that one starts thinking they have a hot hand and they start buying all kinds of stuff. Your XOM trade was studly.
bought exxon this morning again . i was glad my trade didn't get executed yesterday when it missed falling enough . i bought it so much less today .
i have been going for quick profits of 3-4% and repeating
wow , exxon up nicely today , it may be gone by days end if it keeps going .
correction sold . not bad almost 4% gain since yesterday .
on to the next choice .
Last edited by mathjak107; 12-09-2015 at 08:43 AM..
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