Seeking Alpha
  • Brandon Gibbs
    anyone on here follow CLMT?
    11/30/11
    Reply (17)
    • losbronces: Yes, I have owned it several times. They are a specialty chemical mlp. My last sell was @ 23.2 on 4/27/11. They have some issues.
      11/30/11
    • losbronces: The high yield (over 10%) and depressed price are indicative of those, imo. It trades in low volumes, use limit orders to trade.
      11/30/11
    • Brandon Gibbs: my 1st and only entry was @ 18.27, also picked up some cheap FEB 20 calls.. any advice for those?
      11/30/11
    • losbronces: The options are pretty thinnly traded. I am showing the bid @ $0.65 for 20 feb c. I would take profits or even sell calls against your units
      11/30/11
    • losbronces: CLMT runs w/the U.S. economy. If its good, they do well. So depends on your outlook for U.S. economy.
      11/30/11
    • losbronces: Nightmare scenario for them is high oil price in weak U.S. economy and they can't pass along feedstock price increases.
      11/30/11
    • Brandon Gibbs: really, no way to pass along costs?
      11/30/11
    • losbronces: If the economy is good, of course they can. In a weak economy with high oil, they will get squeezed just like refiners.
      11/30/11
    • losbronces: The decline in demand for their products during weakness doesn't allow for price increases. Look @ their 2008-2009 filings.
      11/30/11
    • Brandon Gibbs: ah i see, cool man thanks for the insight. any similar div yielders with better ability to pass along cost?
      11/30/11
    • losbronces: Nothing with that high yield (which tells you something). Right now, 6-8% is what you will get from pipelines & hedged E&P mlps.
      11/30/11
    • Brandon Gibbs: any names you recommend looking into?
      11/30/11
    • losbronces: I own LINE, LGCY & VNR in the E&P. I like CPNO & BWP in pipelines--but currently out. I had CPNO & BWP called away on OTM calls I wrote.
      11/30/11
    • losbronces: I write OTM calls against long-term holdings when the premiums are good. Usually just collect the premium, but strikes get hit now & then.
      11/30/11
    • Brandon Gibbs: yes, my holdings arent large enough to start writing calls yet, but i have been studying that technique and am very eager to start.
      11/30/11
    • Brandon Gibbs: and even when strikes are hit you can always buy back your shares, right?
      11/30/11
    • losbronces: Yes, you can buy them back, but I like to wait for a good entry point. CPNO below $30 and BWP below $25, imo.
      11/30/11