Today it was announced that preferred units of NGL were becoming newly available through an offering. Whoopiedoooo---so the price per unit drops more than a dollar.....on THAT? WHY?
This is the dumbest crap I've seen in a long time. Most of us don't even own any of the preferreds. I know I don't nor have I any wish to, either.
However, I have been adding units of NGL because I'm convinced this epic moment will surely pass, rendering me a very pleasant jump in profitability.
So today I've added 500 units of NGL and my revised cost basis now stands at $13.82. Need I add that I may not be done just yet. I've sold off some KNOP today to make room for the added NGL. And there's more---
I've been adding ALDW also, but only on a drop to around $10.80. You see, I'm expecting much the same sort of outside attack on ALDW that we're witnessing in the case of NGL. So now I hold 24,800 ALDW with a cost basis of $8.33. I'll be picking up 200 more ALDW sometime today or later in the week but I'll wait for the expected dip.
Key to succeeding in this strung-out market is the importance of understanding and reconciling our own fears. Mind you, I see nothing meaningful (negatively so, that is) in NGL's corporate handling other than for their sloppy management of information released to the public regarding future distributions and management's expectations regarding same. As for preferred units? It's not my business as I'm not a stakeholder in the usual sense. I own only common units as declared within this note. As I see things, nothing has changed. On the other hand, there are forces out there determined to make us on the retail side worry and break for the exits accordingly---because the sky may be falling in. Well, I don't scare that easily. In fact, I'm playing to the gloom-&-doom fiddler by adding during this market downturn in NGL.
Listen hard to your instincts for they are always whut brings you to the dance. Mine insist this is great opportunity but if your instincts tell you otherwise, please respect them for they are your best guide.
This is all my opinion but I would expect you all know it. Good fortune!
