MarkWest Energy (MWE +1.2%) shares sank on news of another secondary offering - its third of the...


MarkWest Energy (MWE +1.2%) shares sank on news of another secondary offering - its third of the year - but Jim Cramer sees an opportunity: "When a high-quality stock like MarkWest gets pounded courtesy of a secondary offering... you gotta pounce!" Cramer likes MWE's fundamentals, and the offerings could actually pay off as oil prices rise and if natural gas prices bounce back.

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Comments (3)
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    I'm worried about what the new units are going to do an already thin distribution coverage from Q2. The new projects coming online later in the year will add to DCF, but Q3 could be a bump in the road.
    16 Aug 2012, 12:24 PM Reply Like
  • t6nn4ss9
    , contributor
    Comments (2) | Send Message
     
    Dilution from 65 to 50 thanks to management coming to the well 3 times in the last year. They obviously believe the yield will support the stock. I expect a flat stock pattern until the powers that be wake up to "Hey, NG is cheap energy!" Duh.
    16 Aug 2012, 03:22 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    It's more tied to NGLs than dry gas, and prices of those took a beating over the last few months.
    16 Aug 2012, 04:36 PM Reply Like
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