NGL Energy Partners LP (NGL)

[jugs]

This morning's post ex-distribution trades are proving interesting in that units are going for about the same as last night's close. This means to me, at least, that people want in on the company's future projections with steadily rising payouts to us minority stake holders covering the next three years.

I'd like to add a couple of hundred more units but will be patient. It may take six weeks or so but if this stock drops meaningfully, it will probably occur then and not now. My target buy-point is about $23.00. This would reflect a Q1 (2017) distribution rate of $1.56 + 10%---spread out over four quarters. After crunching the numbers I find that $23 represents a 7.5% yield. This may not happen as that yield is higher than some MLPS with less capability to sustain the payout level. A valuation in the area of $27 would make more sense for the sake of parity in the MLP zone.

So I urge others to be patient and not throw a few hundred $$ away now, just to get the deal done. Reach for and always protect the lowest cost basis you can grab for it's the surest way to add meaningfully to your estate.