This reminds me of nutrition labeling. A loaf of white bread boasts "No cholesterol!" Where are you going to find a loaf of bread in the USA using lard and therefore NOT free of cholesterol?
Ditto when it comes to an ordinary can of string beans boasting "No gluten." Preposterous as greens do not have gluten in any brand.
So in this case there's an offer to loan money. How do we know that borrowings will enable a company to survive? If I offered to loan a struggling company, would that automatically mean there's non doubt as to survivability? And what about gluten? Cholesterol? lolol
In this instance there's an offer to loan money. Without knowing the terms of engagement, how can a rational investor buy into supposed promise suddenly available? Fredriksen ain't no fool. He's cagey as they get and wouldn't hesitate to put the screws to the company and its investors.
Buy into this bit of foreplay and while it may not go further than foreplay you'll probably come out of this screwed---but without a smile. And I just noticed that SDLP actually dropped 7 cents today.
Oh, I know---it was a down day on Wall Street, right? Not so for CVRR and NGL, both of which tacked on a bit. And MDR, too.
There are better bets to be made out there. SDLP is not my choice yet. Regardless of how cheap it gets, the fact remains that in business, there's only one true incentive with investor appeal:
The opportunity to make money for investors.
Things have been in a steady downturn for SDLP for a long time. We've seen consecutive distribution cuts along with severe drops in valuation.
If it walks like a broken egg without quacking or clucking and smells worse, maybe we've got a foul creation best left behind the house for now? The day will come---or it won't. But it doesn't have to whimper away what may be its closing moments using our cash for blood transfusions. Stocks are especially cheap when there's little demand---or TRUST that they will operate profitably.
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