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CVR Partners (UAN) -3.3% AH after announcing a secondary offering of 12M common units by a...

CVR Partners (UAN) -3.3% AH after announcing a secondary offering of 12M common units by a subsidiary of CVR Energy (CVI). UAN will receive no proceeds from the offering.
Comments (10)
  • AaronSales
    , contributor
    Comments (3) | Send Message
     
    Can someone explain this to me. It sounds like they swapped $25 shares for ~$30 shares and taking in the extra $5 to have for other corporate uses. It sounded like they did not dilute by increasing the amount of shares out. Do I have that right? However it seems they established a new base price of around $30.50 or so.
    21 May 2013, 05:00 PM Reply Like
  • Fritz Claridge
    , contributor
    Comments (7) | Send Message
     
    Stay awake, my friends (owners of UAN). There is NO dilution. It is a sale by the existing majority owner of UAN units. The term secondary offering usually spells DILUTION. This is NOT the case here. If you liked UAN at similar or higher prices, you gotta love it here. I plan to ad more if the confusion prevails and the Units drop after the Offering price is announced. These 12M shares also ads to the float...which is typically GOOD!
    21 May 2013, 05:03 PM Reply Like
  • CaptKorn
    , contributor
    Comments (154) | Send Message
     
    All good for UAN. Thanks Fritz.
    21 May 2013, 05:07 PM Reply Like
  • Ajayyy
    , contributor
    Comments (329) | Send Message
     
    I know it's of no real concern in fundaments but I still feel a dislike for this kinda of manipulation of the public. They didn't just come up with this in the last week. Why did they not announce this (unnecessary) action on that day. Why first CVRR, then UAN on mere days after the earnings report and of each other. CVI has climbed ridiculously in the same time.

     

    Aside: Would a paid trade with CVI vs UAN+CVRR work here? CVI really is just the majority of UAN AND CVRR. Any tips?
    21 May 2013, 05:15 PM Reply Like
  • Fritz Claridge
    , contributor
    Comments (7) | Send Message
     
    I am an individual investor and just celebrated my 70th birthday (holey shitoli, I CAN'T BELIEVE IT!). Still run 3 miles 5 days a week and lift weights (beer bottles). I was a stockbroker in the mid 1960s through 1971 and helped postpone more retirements than Barney Frank!. I believe in ducking the 'chatter' and making my own decisions, often telephoning companies directly for explanation of info I can't understand or need expanded. I'm an active trader and attempt to avoid marrying my losers (excluding my ex-wife who had a body that wouldn't quit).
    I value information from individuals versed in stocks and defecate on bashers who missed their lithium dose for the day.
    Lastly; I would rather be known as a bad winner than a good loser!
    21 May 2013, 05:15 PM Reply Like
  • Ajayyy
    , contributor
    Comments (329) | Send Message
     
    Fritz the profile page is up to the right.

     

    P.S. I think Clint Eastwood would be perfect to play you in a movie.
    21 May 2013, 05:24 PM Reply Like
  • pcship
    , contributor
    Comments (39) | Send Message
     
    Ajayyy : I agree with you. UAN immediately dropped to $25.00 after the announcement CVI & CVRR were unchanged. Since UAN is not affected I intend to add to my position there. CVI went up an hour or so before the announcement, some had the news early.. We should have bought CVI A month or so ago at $50.00. I went for dividend & bought more UAN & CVRR.. Its my opinion that CVI is over priced, I will look at it when the big correction kicks in as we all know it will. As for Fritz Claridge KEEP IT UP hope you will be running lifting beer cans & being your own man when you are my age. I will be 88 this year.
    21 May 2013, 06:18 PM Reply Like
  • jack20
    , contributor
    Comments (346) | Send Message
     
    UAN down $1.25 in after hour trading, no dilution, and no change in the projected dividend. It must be Christmas and Hanukkah on the same day!!!

     

    on the same day!!!
    21 May 2013, 06:37 PM Reply Like
  • Ajayyy
    , contributor
    Comments (329) | Send Message
     
    I'm extremely glad for this pull back. I'm loading up. I'm sure as long as the tax deferral for MLPs stay in effect we will keep making hand of fist in distributions. UAN just needs time to establish itself as a regular earner.
    21 May 2013, 06:57 PM Reply Like
  • Steve Rasher
    , contributor
    Comments (1851) | Send Message
     
    Just another knee jerk reaction without people truly understanding what is going on. Definitely an opportunity to pick up additional shares at a lower price with no change in fundamentals.
    21 May 2013, 11:10 PM Reply Like
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