I'm not yet in DKL. But I'm accumulating DK aggressively due to the unjustified low price at this moment. For me it's all about lowest possible cost basis and today is the day.
NGL is doing precisely as expected and I'll be pouncing on more units but am patiently waiting for $11.50 or lower.
At this moment I'm still holding about 13,000 units of ALDW, having sold enough to wipe out my $88,000 margin debt and purchase $1,650 DK.
All is rosy in LalaLand for sure!
What are you folks doing today?
Some critical information as I see it that may help you:
1. ALDW will cease to exist over the next three months.
2. Proceeds from the conversion to DK seem to have been determined fairly with a rate of nearly a half share of DK per each ALDW unit, this---set preliminarily. Final terms will be announced eventually with ALDW's termination coming by the close of Quarter #1, we've been informed.
3. Dramatic upgrades with regard to DK are pouring in as we speak. Wells Fargo just came out with their $40 price target. My target had been $38-$39 but they get to study the books from the inside whereas I'm able to see only filings DK presents via the SEC and are then publicly available to those of us in the public sector.
4. DK's response to the upgrades have been strong but not unjustifiably so. Muting it is realistic given the large drop in the leading indices first out of the morning's chute.
5. ALDW is higher today but for no reason I can fathom unless I assume people in the investment community are just not "getting it."
There is zero reason to expect another distribution from ALDW inasmuch as ALDW will no longer even exist come sometime in March, most likely. Units held will be converted to DK as we know but that doesn't ensure the holder will be pleased with the conversion basis which has yet to be firmly established.
Thus it is that I've elected to liquidate about half of my earlier ALDW holdings, believing that this enables me to grab onto what will most likely develop into an enviable cost basis. Within a few months my remaining ALDW will automatically convert as is well known.
In this fashion I'm getting to steer my own ship regardless of dealings yet to be proffered by DK. That's important to me as it's that same independence of mind that has been able to eliminate a frightening margin debt while also launching several positions in DK although still small at this time.
Disclosure:
I now hold 1,650 shares of DK with a cost basis of $27.72. It's a meaningless gain so far but I'm positive it will not remain so.
Happy hunting, folks. You now know as much as I do. It may not be much but it's the best we gots! lol
