A beautiful morning to all here!
In ALDW-Land there's been an interesting development:
Ignorance is giving way to smarts!
Incredible, really.
We opened down 38 cents out of the trading chute this morning out of respect for the SEC-mandated removal of 38 cents as a consequence of having gone ex-distribution this morning. Typically, an MLP will give up notable ground in terms of valuation upon going ex-D, amounting to quite a bit more than the amount of the distribution.
I was set to add at a price beneath $11. We hit that magic number but not in sufficient quantity to enable me to meaningfully add units. And now I see that we are higher by eleven cents, landing at $11.09.
What does this mean?
It tells me that people are waking up to the fact that this is potentially a cash cow. This is the time to launch positions, add to them, whatever it means to strengthen your investment future.
Those picking up units of ALDW at this point in time are not just your everyday plain-Jane smart, they're rowing upstream with their pinkies and they're gonna win the race to wealth.
Everything an investor could wish for is now the case regarding ALDW's future. I've posted enough on the strong points in previous posts and won't bore you with it yet again. What I will say is that today is the first rational day to take a position in ALDW without the distribution carrot dangling ahead. Given that those of us holding positions prior to today's opening have secured 38 cents for each unit held, today marks the beginning of the year's second quarter likely to continue our very high yield. At this moment (11:07am Central time) units are running $11.11, up 14 cents so far on this day of the Jugs. lol That amounts to a 38% payback after removing the distribution.
This tells me people know that the remaining three quarters of the year can be expected to pay rich distributions. We get 38 cents for Quarter #1 which is the weakest quarter of the year? I expect we'll come close to doubling that when Q#2's guidance comes out. Quarter #3? Could easily be in excess of $1.00---that's right, a dollar!
Take a look at the yield as things stand right now: $11.11/unit paying the same 38 cent distribution ahead translates into a yield of about 14%. My bet is that the next distribution will be more than 60 cents. Regardless, who can deny the sheer beauty of a 14% return on an American company producing and selling gasoline for American use?
This is an incredible opportunity for us and I'm not holding back. Launching positions in this stock pick may represent a major departure from an IHUBer's more usual investment style but few ill deny that investing in penny stocks doesn't always bring much of a return and in truth, usually results in a loss. I've been in ALDW since its IPO and I've never lost money on it. At this very moment I'm holding 24,5400 units of ALDW with a gain on the books amounting to $61,000 with $9,300 coming in soon due to the quarterly distribution already assured. $70,000 in profits? It doesn't get better that that!
And I predict the best is yet to come with valuation benchmarks to be hit by the end of September when I believe we'll hit $15 or greater and $20 before year's end.
So while it's for everyone to decide for him/herself how to approach an investment program, why not jump on board and ride the profit wave with me? With catdaddy? With Pete807? With Wall Street Rocker?
C'mon, pennies are fun but almost never profitable.
ALDW is the real thing. I don't work for the company and won't make a dime on your investment. But I will definitely feel I've done my fellow investors a good turn by encouraging them to pursue a more highly prospective course of action instead of chasing a dream to nowhere.
Now's the time to make a stand for a richer future!
