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Akaralph

 
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  • DGI Retirees Buy When Others Are Fearful: Is Panic In The Oil Patch Giving Us That Buy Signal? [View article]
    George -

    I like your articles but I don't think you have a clue about the E&P MLP's. In 2008-2009 many reduced or eliminated their distributions. BBEP suspended theirs for one year after Feb 2009.

    While many are hedged for a year or so the banks are going to be reluctant to continue extending credit for CAPEX. In addition, most, if not all E&P's have debt/EBITDA ratios well above 4.0X. Don't buy these!

    I would instead look at the best midstream MLP's - those with increasing DCF, good coverage ratios and debt/EBITDA less than 4.0X.
    Dec 15, 2014. 10:04 AM | 3 Likes Like |Link to Comment
  • What's Wrong With BreitBurn Energy? [View article]
    james -

    I don't know specifically about the timing of such an event. I can suggest you review what happened in 2008 - 2009 when oil dropped from $140 to $35. A number of E&P's eliminated or reduced their distributions as the price of their units went into the mid single digits. Most recovered nicely.

    The midstream MLP's also dropped 60 or 70%; however, the good ones (EPD, MWE, PAA, OKS, KMP etc.), maintained, or even increased distributions. Those whom were smart enough to double down on these have done quite well.

    Personally, I think things are a bit different now. In 2008 - 2009 the entire market dropped from 14000 to the 6000's. That has not happened this time and that concerns me. If the market were to have a severe correction, MLP prices would take an incredible hit.

    My advice is to hold your cash and be patient. You probably won't buy at the bottom but you will find some good prices out there. The only E&P that I would consider down the road is MEMP. Otherwise, stick with the best of breed (hate using Cramer terms) - EPD, MWE, PAA, KMI, OKS etc. when you buy. Make sure those that you buy have increasing DCF, solid coverage ratios and a debt/EBITDA ratio well under 4.0X.
    Dec 15, 2014. 09:36 AM | 12 Likes Like |Link to Comment
  • What's Wrong With BreitBurn Energy? [View article]
    hhmcdon-

    Hate to be the bearer of bad news and upset your sleep habits but in Spring of 2009 BBEP suspended the distribution for one year.
    Dec 15, 2014. 08:43 AM | 7 Likes Like |Link to Comment
  • Emerge Energy: Looking A Little Vulnerable [View article]
    You neglect to mention that EMES is an MLP and SLCA is not - they are evaluated differently.

    With an MLP you need to look at DCF, the coverage ratio and equally important the debt to EBITDA ratio.

    EMES DCF has been increasing Q over Q, the Q3 coverage ratio is 1.16X and the debt/EBITDA ratio is 1.75X (anything below 4.0X is good).

    Might want to read up on MLP's.
    Dec 14, 2014. 03:35 PM | 19 Likes Like |Link to Comment
  • First Oil And Gas Merger: Enterprise Products To Acquire Oiltanking Partners [View article]
    "I cannot evaluate whether the condition is challenging. However, I would like to note that every time that I have found one of this conditions in my career has never created any issue."

    What does this mean?

    You really might want to do some proofreading before submitting an article. At least get the EPD symbol correct - it is not EDP.
    Dec 14, 2014. 06:46 AM | 4 Likes Like |Link to Comment
  • Can Long Run Exploration Sustain Its 30% Dividend Yield? [View article]
    I think the answer to your question about dividend sustainability is "No".
    Dec 13, 2014. 09:20 AM | 1 Like Like |Link to Comment
  • BlackRock Health Sciences Trust: A CEF I 'Love' That Should Be On Your Watch List [View article]
    Actually the premium is 5.92%.
    Dec 12, 2014. 11:00 AM | 2 Likes Like |Link to Comment
  • Update: Capstead Mortgage Declares Its Dividends - Should You Buy The News? [View article]
    Chris -

    When will you be buying CMO?
    Dec 11, 2014. 02:01 PM | 1 Like Like |Link to Comment
  • Gabelli Dividend & Income Trust: 10% Yield With A Value Focus [View article]
    You have to remember that in June 2014 they paid a special dividend of $1.20, with no guarantee that this will be repeated on a perpetual basis.

    Without this, the dividend is $1.20/year for a current yield of 5.57%.
    Dec 10, 2014. 11:12 AM | 4 Likes Like |Link to Comment
  • Seadrill Partners: How's That Distribution? [View article]
    "cut" and "reduce" are major understatements!
    Dec 10, 2014. 09:47 AM | 1 Like Like |Link to Comment
  • Prospect Capital Cuts Dividend, Now Yields 11% [View article]
    You are correct - sorry.
    Dec 8, 2014. 09:33 AM | 2 Likes Like |Link to Comment
  • Prospect Capital Cuts Dividend, Now Yields 11% [View article]
    chuck-

    PSEC is down .57 pre-market - about seven quarter's worth of dividends.
    Dec 8, 2014. 09:01 AM | 2 Likes Like |Link to Comment
  • Prospect Capital Cuts Dividend, Now Yields 11% [View article]
    I have said for months that with PSEC's NII not covering the dividend that this was going to happen.

    Until NII picks up the dividend will be under pressure.
    Dec 8, 2014. 08:15 AM | 4 Likes Like |Link to Comment
  • Enumeral: An Undiscovered And Undervalued Biotechnology Company [View article]
    cdgingrich -

    You've got that right. They haven't a clue.
    Dec 6, 2014. 10:09 AM | Likes Like |Link to Comment
  • Enumeral: An Undiscovered And Undervalued Biotechnology Company [View article]
    If it is so good, why do you not own it?
    Dec 6, 2014. 08:31 AM | Likes Like |Link to Comment
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