I hate this but you'd hate me more if I didn't speak up. So, here it is:
Word just got to me that DCF here in JPEP-Land has fallen to 79% over the past year. When "distributable cash flow" can't match stride with distributions, there's only one way to go and that's a significant cut in our payouts. By itself, that's not the ultimate deterrent. However, we don't have to stick our heads in the guillotine. And worse is how JPEP units might react on news of an impending distribution cut. I'd hate to lose my gains.
Distribution cuts are hardly new to us but this is Brexit Week and it is reasonable to expect things to respond with unreasonable severity. On top of that, I expect oil to take a hit this week--- a breather at least until the Eurozone straightens things out.
There are other plays out there for us---Pete and I are looking into one as we speak. And our family of opportunities is large enough to present excellent alternatives.
So, then---I will sell my ENTIRE position as soon as I can get a feel for the opening bell.
Think this over, please.
I'm uneasy about letting go as I remember well the positive reactions to some of our picks when they announced cuts. Still, I'm confident in our other picks---enough to put more cash into a couple, believing gains there will be offsetting JPEP disappointment---even if JPEP should rise on a revised payout schedule appearing to be newly sustainable.
As I think this through more completely, I may sell off half and take my chances.
Your input is most eagerly awaited.
