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  • A Closer Look At Magellan Midstream Partners' Q3 2015 Distributable Cash Flow  [View article]
    If you were to compare your "sustainable cash flows" to DCF on an annual basis over the last 5 years, would there be any material differences? On a quarterly basis, the numbers you present say "yes" but if you look at the TTM numbers you present, that says "no".
    Nov 17, 2015. 06:41 PM | Likes Like |Link to Comment
  • Buckeye Partners: Is The 7% Distribution Sustainable?  [View article]
    Why do you waste time talking about deferred taxes on a pass through entity like a PTP? By doing so at the beginning of your piece, I stopped reading because it obviously shows you have no idea what you are writing about.
    Nov 9, 2015. 09:02 PM | Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow  [View article]
    As a practicing CPA, there is no way that GAAP will ever define EBITDA, DCF etc - that is why they are "non GAAP measures". Companies define these measures as they will, which is why the SEC requires them to disclose exactly how they define these measures and then reconcile them to the GAAP numbers. Understanding that reconciliation is critical.

    Thanks to Ron for informing us about his conversation with IR.
    Aug 30, 2015. 06:36 PM | Likes Like |Link to Comment
  • Costco: Steady As She Goes  [View article]
    If you take the time to read Costco's financial reports, accounts payable to vendors is usually less than its inventory number - so the vendors are essentially financing the inventory and then some.

    As a Costco shopper, I love going there, the employees are nice, the stores clean, the merchandise is what you expect and I have never been disappointed.

    If you look at the size of the merchandise in the average cart, most people are spending big $$$ there, and it isn't a low class customer either. I notice there are plenty of Benz, BMW, Volvos and other higher end cars in the parking lot.
    Jul 31, 2015. 08:46 PM | 3 Likes Like |Link to Comment
  • Magellan Midstream Partners: Quality Growth And Income  [View article]
    "All these projects will increase revenues and thus cash flow available to distribute to shareholders."

    This statement isn't really true. Projects like Saddlehorn where MMP owns 40% will not generate any revenue for MMP as it will be accounted for under the equity method. In addition, unless the partnership that owns Saddlehorn distributes cash to its partners, there will be no money generated by the project to distribute to MMP unit holders. While I would expect there would be cash distributed to MMP and the other owners of the pipeline, generally the cash distribution trails the profit.
    Jul 13, 2015. 05:29 PM | 1 Like Like |Link to Comment
  • Williams deal means higher taxes, lower income for some investors  [View news story]
    The disposal of 100% of the units in the MLP should allow an individual to deduct 100% of the accumulated passive losses that had been suspended in prior years, so holders of WPZ may or may not get stuck, it all depends on their individual situation and how long they held the units.

    This is not a simple computation, and clearly the author didn't really understand the tax consequences. For example, when KMP was acquired by KMI, that triggered a rather large loss for one of my relatives because all of those suspended passive losses came roaring through the return, so things worked out fine for that situation.

    With stuff like this it is irresponsible to generalize.
    May 13, 2015. 08:35 PM | 9 Likes Like |Link to Comment
  • Preliminary Review Of Enterprise Products Partners' Q1 2015 Results  [View article]
    I didn't seem to get any value from this one. A bit odd, this author usually delivers.
    May 4, 2015. 08:50 AM | Likes Like |Link to Comment
  • BNSF adds new safety rules for crude oil trains  [View news story]
    Can't have Obama coming down on his buddy.
    Mar 30, 2015. 09:25 PM | Likes Like |Link to Comment
  • MLPs Weren't Supposed To Decline  [View article]
    In the MLP sector, I invest primarily in midstream MLPs. As long as the cash flows are there, these securities should recover in price given the current interest rate environment - should that environment change significantly there normally will be some who shift some of their funds Long term investors had an opportunity to pick up some high quality securities at a serious discount recently.

    Many / most of the pipelines are FERC regulated, and FERC has a history of usually granting periodic tariff increases which means an increase in revenue as long as the barrels are being moved. The storage element of these operations are subject to periodic lease renegotiation which could mean higher or lower revenues depending on how much storage is on the market.
    Dec 31, 2014. 05:47 PM | 1 Like Like |Link to Comment
  • Ditching The 401(k)  [View article]
    I think you missed the point of a tax deferred plan. Earnings on the money invested in such plans pays no current taxes allowing the money to grow faster so that upon retirement you have more to live off of.

    The reality is that even if you max out contributions to a 401k plan and an IRA (tax deferred or after tax in both cases) you won't have enough for retirement assuming an average market return over a 30+ year career, so you better be saving and investing outside of tax advantaged accounts in addition to maxing out all tax advantaged options. Otherwise, unless you like eating cat food, you are going to be up the creek without a paddle.
    Dec 29, 2014. 09:22 AM | 3 Likes Like |Link to Comment
  • Retirement Strategy: I Will Not Follow The Herd, Will You?  [View article]
    I generally agree with your thesis here, except in 1 type of situation. That is when the underlying business of the investment is not doing well. In the portfolio presented, I take aim at MCD (which I own). Their business is struggling and management and the board could possibly cut the dividend back some - not saying they will - but, look at PB a year or so ago, that business was not doing great, there was a change in management and boom, the dividend got cut.

    I need to do more work on MCD myself before I make a call one way or the other.
    Dec 14, 2014. 08:05 AM | 1 Like Like |Link to Comment
  • Kinder Morgan begins test drilling on Burnaby Mountain  [View news story]
    The environazis are just a bunch of punks, Kinder will steam roll them over and over.
    Nov 23, 2014. 07:15 PM | 1 Like Like |Link to Comment
  • A Closer Look At Buckeye Partners' 3Q'14 Distributable Cash Flow  [View article]
    I don't disagree with facts as presented. The market values securities not on what happened in the past, but where the security is going. While I recognize history for BPL isn't great in recent years, I don't also worry about MLP investments as long as distributions are growing and the business improving.

    So while the Author's thesis has been repeated over and over again for most MLPs, it hasn't really provided me with much value as it is a backward looking view, and not a forward looking view. Thanks for trying, but it was really pretty useless.
    Nov 21, 2014. 10:24 PM | 2 Likes Like |Link to Comment
  • 13.1% Distribution Linn Energy Had A Good Q3, But It May Be In Trouble If Oil Prices Don't Rise. Sell?  [View article]
    So the attack begins again on Linn. Frankly, as long as distibutions are not going south, I am happy to sit and collect. I am not alarmist on the company's strategy and direction. It is easy to be critical as many others have been. but Linn delivers over and over again. That to me means that management has cred and knows what it is doing. I will stick with Linn.
    Nov 15, 2014. 12:17 AM | 18 Likes Like |Link to Comment
  • Update: Calumet Specialty Products Earnings  [View article]
    I agree with you that the leverage ratios are on the high side. One of things that makes this MLP a little different is the % ownership owned by managementl and the family.

    The other thing that makes CLMT a bit different is that they actually produce premium products that are priced for profit.
    Nov 11, 2014. 06:05 PM | 2 Likes Like |Link to Comment