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  • Eaton extends restructuring program, moving to counter weakening sales  [View news story]
    Are we still expecting a quarterly dividend boost to $0.60 per share later this month?
    Feb 3, 2016. 05:36 PM | Likes Like |Link to Comment
  • Enbridge Energy Partners declares $0.583 dividend  [View news story]
    No spike today :-(

    But EEP/EEQ holding up well in a very bad energy tape.
    Feb 1, 2016. 03:50 PM | Likes Like |Link to Comment
  • Enbridge Energy Partners declares $0.583 dividend  [View news story]
    Good luck now that you have loaded up on EEQ!

    I have a core position, but went into the after hours market on Friday (something very unusual for me) in order to pick up some more shares.

    The market, unfortunately, was too illiquid. I was only able to get 100 shares at $17.55.

    So, hopefully EEQ doesn't spike up TOO fast on Monday morning! :-)
    Jan 30, 2016. 11:46 PM | Likes Like |Link to Comment
  • Universal Insurance declares $0.14 dividend  [View news story]
    Just wondering, in all sincerity, whether El Nino has any impact on weather conditions in the Atlantic? Historically, has there been an uptick in hurricanes or the severity of hurricanes in El Nino years?

    If yes, perhaps UVE is a text book sell in May and go away stock in 2016. With a repurchase date of October or November 2016.
    Jan 30, 2016. 03:56 PM | Likes Like |Link to Comment
  • Enbridge Energy Partners declares $0.583 dividend  [View news story]
    On November 25th (during the week of Thanksgiving and right before the KMI death spiral), KMI traded at $24.13 and EEQ traded at $24.77. So, an EEQ share was roughly 2.5% higher priced than a KMI share.

    Yesterday, KMI (having cut its dividend by 75%) finished the day at $16.44 while EEQ finished the day at $17.45. So, as of Friday, an EEQ share was roughly 6% higher priced than a KMI share.

    So, it seems like Mr. Market must have been pricing in some kind of distribution cut. Arguably, a major distribution cut.

    Now that EEP/EEQ has maintained the existing distribution, the question is, how much of the decline in KMI shares was attributable to the distribution cut and how much of the decline was attributable to the decline in oil prices, the deterioration in macroeconomic conditions, the Fed rate hike, regulatory matters (i.e., Canada) and other issues?

    USO traded at $13.25 on November 25th while it finished at $9.65 yesterday. And overall market conditions have deteriorated since late November. Plus, residual concerns remain about the possibility of future EEP/EEQ distribution cuts in May, August and/or November.

    It would therefore seem overly optimistic to expect EEQ to trade back at $24 or $25 next week.

    However, it seems overly pessimistic to assume that EEQ shares continue to trade at roughly the same price as KMI shares. I would think that EEQ shares should rise to at least the high teens or low twenties over the next several trading sessions. Perhaps even higher if oil continues its (very) recent uptrend and stock market performance improves.

    Perhaps people will wait for the earnings report in February. But if fourth quarter earnings for EEP/EEQ were unexpectedly bad the company would likely have reduced the distribution, no?
    Jan 30, 2016. 03:36 PM | 1 Like Like |Link to Comment
  • Enbridge Energy Partners declares $0.583 dividend  [View news story]
    So does EEQ/EEP spike up on Monday? Stock seemed to be trading on expectation of at least a partial distribution cut.
    Jan 29, 2016. 08:13 PM | 1 Like Like |Link to Comment
  • Don't Be Misled By The High Arbitrage Spread Of The Baker Hughes/Halliburton Deal  [View article]
    Any thoughts on what happens to $HAL stock in the event that the deal falls through? Does it go down? If so, how much? I assume less than the 25% that $HAL is projected to fall -- even with the $3 billion break up fee.
    Jan 20, 2016. 07:24 PM | Likes Like |Link to Comment
  • Hain Celestial issues light FQ2 guidance, cuts FY16 outlook  [View news story]
    I think the stock finds support between $35 and $45 for now. Any lower and it becomes a prime takeout candidate for a bigger packaged food company.
    Jan 12, 2016. 10:24 AM | Likes Like |Link to Comment
  • Hain Celestial issues light FQ2 guidance, cuts FY16 outlook  [View news story]
    I suspect that the recent price declines may already incorporate lower earnings. At $36, it would only be trading at 18x earnings.
    Jan 11, 2016. 06:00 PM | 1 Like Like |Link to Comment
  • Moody’s downgrades Williams, cuts outlook for Energy Transfer  [View news story]
    Dividend cut coming a la $KMI?

    The mere threat of a Moody's downgrade in November caused Kinder to cave and cut $KMI's dividend by 75%
    Jan 8, 2016. 07:42 PM | 1 Like Like |Link to Comment
  • After Hours Gainers / Losers  [View news story]
    What? The deal offers 1.52 shares of ETC and $8 cash. Assuming ETC shares have the same value as ETE shares, then they can currently be valued at ~$10.87. So, the consideration for each WMB share is currently ~$24.5. WMB shares currently trade at ~$20.30.

    So the upside is roughly 20% -- if the deal actually goes through.
    Jan 8, 2016. 02:09 PM | 1 Like Like |Link to Comment
  • WSJ: Valeant plans to name new CEO (updated)  [View news story]
    $97.5 in the aftermarket.
    Jan 5, 2016. 06:31 PM | Likes Like |Link to Comment
  • Barron's: The worst is not over for Kinder Morgan  [View news story]
    That KMI was worth less than $10
    Dec 9, 2015. 07:43 PM | 3 Likes Like |Link to Comment
  • Barron's: The worst is not over for Kinder Morgan  [View news story]
    Funny, given that last week's Barron's said there was "limited downside" for the stock, which was trading at $17.

    The article suggested that KMI would cut its dividend by 40%.

    Of course, KMI cut it's dividend by 75% to buttress the balance sheet that Barron's was freaking out about.

    Now, Barron's says KMI risks shareholder disenchantment and further price declines for doing exactly what Barron's said was necessary.

    KMI just can't win.
    Dec 9, 2015. 07:21 PM | 11 Likes Like |Link to Comment
  • Not all MLPs will follow Kinder Morgan's dividend cut, Kessens says  [View news story]
    Should I assume that EEP/EEQ will cut their distribution and get out now? They have lower D/EBITDA ratios than $KMI but have a coverage ratio of under 1.

    The question is whether a distribution cut is already priced in. Stock closed at 22.46 -- 46% off 52-week high. If they cut distribution by 50% to $1.166, the yield would fall to 5.20%. For the MLP to yield 6.7%, the stock would need to come down to ~$17.40.

    So by that measure, a cut has not been priced in.
    Dec 9, 2015. 06:22 PM | Likes Like |Link to Comment
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