Well, we're obviously heading higher today, and most probably the rest of the week. We receive guidance on Friday so if my expectations prove to have been widely off, I'd expect to see a selloff, of course. However, it's not looking like that's about to happen so I remain optimistic.
More and more I'm sensing an increasingly stronger drumbeat mounting in favor of ALDW ownership. There's certainly much to like about this company and the only thing I don't like is the impact of renewable identification certificates or, as they're called, RINs. These, for the uninformed, are a tax levied against refiners that do not self-blend ethanol into their product line. Government operating costs are such that by attaching the tax in this fashion, much needed capital feeds into the government. Unfortunately, it has crippling effects, too. And ultimately, these impactful expenses will be borne by the consumer.
Mr. Trump's legions are poised to obtain relief but there doesn't seem to have been much progress thus far, if any at all. I remain hopeful, just not expecting very much this year. But I do trust he will seek relief.
Today finds both ALDW and NGL moving higher. This is a rare occurrence, indeed, as they typically counterbalance one another. But we are in an unusual moment for both companies as they will be reporting guidance within mere days of each other. In the case of NGL, we know what the distribution will be as management has already declared that 39 cents is to be awarded unitholders in a couple of weeks. We await news from ALDW.
Interesting to me is that NGL has been beaten down without remorse. ALDW has been holding its own for a long time now and as we head into ex-distribution day, it's looking as though folks are increasingly optimistic. There's certainly been a lot of analyst coverage with a ready audience slurping up the news provided by media outlets. My prediction is that NGL will be tacking on gains fairly steadily as me move through quarter #3. There's no reason for things to be otherwise, frankly. And the company has the means to deliver on all fronts.
Right now, though, it's ALDW that has me stoked...and stocked. lol
