As most here must surely know by now, our sister stock---NGL--- has been under attack. Today was probably a death blow for some due to the company making known that there's an offering with proceeds going to relieve operational expenses along with intended relief down the road to enable better debt-related matters. Below I'm going into some detail on NGL. Why? Because I'm expecting ALDW will soon become the target of tactics we're seeing affecting NGL. So listen up, everybody as thgis will affect every one of us shortly.
This is routine stuff I think of as "maintenance" and nothing more. But bringing our unit price to beneath $12.50? C'mon folks, surely you see what's happening here, right? We closed at $12.25, hard as that is to believe, and rightly so, in my opinion.
Today's trading action was absolutely loonyville all the way. And I sold some units of another stock to enable me to pick up 500 units of NGL at sub-$13 prices.
My newly revised NGL holdings are as follow:
11,500 units with a cost basis of $13.82.
If I can pick up another 100 or 200 tomorrow , I will do so.
For the record, I'm not at all worried about my (now) more sizable investment in NGL. My positions here are worth $141,000 and I'm underwater to the tune of $18,000. This is quite the come-down from a month or two ago when I was well ahead and not within listening distance of the precipitous drops we've been privy to of late.
This begs the question:
Why am I NOT overly concerned?
Good question, so glad you asked lol
There are a couple of reasons I'm not especially concerned. To begin with, this has been a fine investment vehicle for me for many moons. I've seen nothing in place likely to unseat me at this juncture.
While I feel their investor relations office has been derelict in terms of dealing responsibly with their obviously misunderstood bungling of distribution expectations, they failed to address same publicly and for this I am disturbed. However, my vexation is not in any way tied into their overall operational performance. I see continued success here.
Selling preferred units is standard procedure. If I weren't so stretched out myself, I, too, would be interested in acquiring some of these units. They don't spell dilution in the same way as offerings based on common units will. I think people aren't understanding the difference.
NGL is now paying a yield of 13% and slightly better. That is outstanding and I'm positive units will climb back higher once people get over the jitters that current market gyrations have created.
There's more I could say but it's enough for now. Those with unanswered questions are more than welcome to voice their concerns. I'll try my best to help walk you through my opinions if I can be of service.
Meanwhile, be your own Captain of your Ship and commandeer your fortune!
I've shared my opinions above but never forget that yours are the basis for your investment positions.
