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Albert Alfonso

 
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  • MLP Suspends Distributions - Second MLP To 'Blow Up' In 2014 [View article]
    It is surprising to see (VNR) mentioned so frequently. I remember when I started to cover them that no one even knew what they were or what they did.

    I have held them for nearly 2 years now. Total return is in excess of 25%. Market beating? No. But that was not the point of owning it.
    Apr 24 12:19 PM | 1 Like Like |Link to Comment
  • Linn Energy: A Closer Look At LinnCo's 'Dividend' [View article]
    captain,

    We will have to amicably agree to disagree. However, one last point which I seek to clarify:

    What I will say is that LINE should have not been referring to LNCO as paying dividends last year. A return of capital is not a dividend under any definition.

    The good news at least is that LNCO is projected to finally pay real dividends this year. I hope that its share price rises to at least par to LINE. It is an interesting concept which I think many other stocks in the sector could employ.
    Apr 24 12:15 PM | 3 Likes Like |Link to Comment
  • MLP Suspends Distributions - Second MLP To 'Blow Up' In 2014 [View article]
    I called out EROC as having an unsustainable distribution last June http://seekingalpha.co...

    When they eventually cut the distribution, I ran the numbers and it was still unsustainable
    http://seekingalpha.co...

    EROC is a disaster and should be avoided.
    Apr 24 07:41 AM | 9 Likes Like |Link to Comment
  • General Electric: Buying Into Europe's Recovery [View article]
    Anyone notice that Bloomberg is going back on their story? The version I used was from around 7PM eastern yesterday. The article was updated this morning at 5AM.

    Alstom is also denying that any talks took place
    http://seekingalpha.co...
    Apr 24 07:38 AM | Likes Like |Link to Comment
  • General Electric: Buying Into Europe's Recovery [View article]
    Alstom was/is in the middle of a large turnaround. They have been shedding assets and cutting workers since at least 2010 according to their presentations.

    GE would be getting a very valuable asset base, though the workforce seems to be overpaid.
    Apr 24 07:34 AM | 1 Like Like |Link to Comment
  • Eagle Rock Energy to suspend quarterly distribution [View news story]
    EROC is toast without the Regency deal. It way overpaid for the midstream assets and now the loan covenants are getting breached. It might have to sell its more desirable upstream assets if the deal falls through.
    Apr 23 10:50 PM | Likes Like |Link to Comment
  • Linn Energy: A Closer Look At LinnCo's 'Dividend' [View article]
    ba37840,

    Throughout 2013, LINE has referred to LNCO as paying dividends. Just take a glance at its presentations.

    From http://tinyurl.com/kkm...

    Taxation at LinnCo Level

    "...Distributions from LinnCo to its shareholders treat as dividends to the extent that LinnCo has earning and profits"

    However, since its IPO, LNCO has never had any earnings to declare these dividends. If all LNCO is able to do is return capital, then labeling them as dividends is misleading.

    http://tinyurl.com/csu...
    http://tinyurl.com/l9w...
    Apr 23 09:16 PM | 1 Like Like |Link to Comment
  • Kinder Morgan Energy Partners Easily Beats Expectations [View article]
    The cash saved from the KMR dividends is used for the "equity" portion of capital projects.

    I would not worry about KMP's DCF, it has been trending higher, inline with the distribution growth.
    Apr 23 02:21 PM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners Easily Beats Expectations [View article]
    Sumflow,

    KMR share dividends are used as a source of capex by KMP. The coverage ratio refers to cash from KMP to the unitholders.
    Apr 23 02:10 PM | Likes Like |Link to Comment
  • Linn Energy: A Closer Look At LinnCo's 'Dividend' [View article]
    captain,

    LINE changed their tune regarding the LNCO dividends fairly late in the game. It was previously assumed that they would be qualifying dividends. This turned out not to be the case.

    If you go into their presentations for 2013, you will see this for yourself. It was only in 2014 where they changed them to non-dividend distributions. As for the reason, it is likely a side effect of the Berry merger.

    Remember, the LINE/LNCO structure in unique in the upstream MLP sphere. EEQ/EEP and KMP/KMR offer stock dividends, not cash, so they avoid much of these hassles.
    Apr 23 11:33 AM | 5 Likes Like |Link to Comment
  • Realty Income: The Morgan Stanley Downgrade Is Misguided [View article]
    As stated above, EPS is not a good measure of profitability for REITs. The industry standard is Funds from operations, or FFO. (O) has about a 90% payout ratio based on FFO.
    Apr 23 09:43 AM | 4 Likes Like |Link to Comment
  • General Electric: What Caused The Sudden Weakness In The Healthcare Division? [View article]
    locutus,

    LOL if you think my piece was rightwing in anyway.

    GE noted Obamacare specifically in its CC as the cause for the declining Healthcare equipment revenues in the US. This was in stark contrast to worldwide, where it saw mid-single digit revenue growth.

    GE is now seeing revenues pick up as concerns about its implementation abate. It was a one-off decline, nothing major, but still very interesting to see in action.
    Apr 22 07:04 PM | 1 Like Like |Link to Comment
  • General Electric: What Caused The Sudden Weakness In The Healthcare Division? [View article]
    Hi keallen,

    The title needs to be enticing for the reader, but vague enough to encourage the actual reading of the article.

    I struggled to write the article without getting political. GE clearly saw a net negative impact this quarter as a result of the ACA, with one of its growth divisions posting a shocking y/y decline. However, this was mostly a one off event.
    Apr 22 02:32 PM | 1 Like Like |Link to Comment
  • Kinder Morgan Energy Partners Easily Beats Expectations [View article]
    Good catch. Should be fixed soon.
    Apr 21 11:16 AM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners Easily Beats Expectations [View article]
    Butterfly seeker,

    Regarding the Q/Q vs Y/Y coverage ratio:

    That is why I provide both metrics. The TTM average does give a better read overall. However, do note that DCF seems to have grown inline with the distribution. If that were not the case you would have a weaker coverage ratio y/y.

    I agree on the "language" and that is why the article was titled as such. KMP beat its own internal projections for DCF this quarter. The company is pretty much implying that this will continue for most of 2014.
    Apr 21 10:24 AM | 1 Like Like |Link to Comment
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