Center Coast Brookfield MLP & Energy Infrastructure Fund (CEN)

[bar1080]

"Announces Completion of Reverse Share Split"

"Center Coast Brookfield MLP & Energy Infrastructure Fund (CEN) (the “Fund”) today announced that the previously disclosed 10-for-1 reverse share split was executed today prior to the open of trading on the New York Stock Exchange (“NYSE”). The Fund’s common shares will begin trading on a split-adjusted basis under its ticker symbol, but with a new CUSIP number, as reflected below. As a result of the reverse share split, every ten (10) of the Fund's outstanding common shares were converted into one (1) common share."

https://finance.yahoo.com/news/center-coast-brookfield-mlp-energy-103736658.html

[BRONSON]

Thanks for the update appreciate it guess I'll stay away on the sidelines

[tradesalot]

.0225/Qtr, .09/Year. Whoppee!

[BRONSON]

So what's the deal here thinking about picking up a chunk and getting back in
Now they're only paying dividends 4 times a year or once a quarter is that right? How much are they paying now?

[Scotttrader80]

CEN was paying a .1042 cent monthly dividend when oil was $60.00 a barrel. What they've done is fudged a LOT of shareholders cutting the divy to .03 cents then taking it quarterly. The 10-1 RS was the final straw. Management hasnt cut their annual salaries, its the little guy that takes the screwing.

[tradesalot]

I have sent a 2nd request for shareholder communication re: the outlook for the funds investments, specifically the private investment in the KKR property as it is 41.5% of total holdings. Seems clear something must be wrong with this investment as other mid-stream MLP's have recovered about 1/2 of losses while CEN continues to bleed down and Alerian MLP index down ~54% vs. CEN down ~90%. [e-mail] if anyone wants to contact them.

[ErnieBilco]

Nobody knows but I do know the RS kicks in July 2nd

[tradesalot]

It is sad and pitiful. Still wondering if not a bigger problem here. DIV's incredibly steady for years up to this point, now next to nothing. Oil near $40. Any informed opinions where oil prices need to be to return CEN to stability or profitability?

[ErnieBilco]

Got my divis today, so sad and pitiful compared to the monthly I used to get.

[tradesalot]

A total loss or not? Just compared a bit to KMF, another mid-stream. KMF down 54% from high around 1/6/20, CEN down 84%. KMF dividend cut 60%, CEN cut 84%. Alerian MLP Index down around 54%. Doesn't seem like they've been very good stewards of our money. Any thoughts?

[tradesalot]

I got that from TDA also. That's where I got that the KKR investment was 41.5% of assets.

[Scotttrader80]

Got this from TDA tonight

https://publicsecurities.brookfield.com/~/media/Files/B/Brookfield-BIM-V4/documents/us-closed-ends-funds/center-coast-brookfield-mlp-infrastructure-fund/2020_SAR_CEN.pdf

[tradesalot]

Can someone bring me up to speed on KKR investment? Obviously it is key to CEN valuation at 41.5% of their assets.

[tradesalot]

.0225 is the Quarterly Dividend, so .09/Year. This from 1.20+ just a short time ago. Also someone posted incorrectly it was .0225%. Seems to me they have really mismanaged this MLP. KMF is another mid-stream MLP, has done much better. Maybe NDP & FPL also (not sure if these are apples-to-apples). Need to look at holdings of each to see. Waiting for Class Action Lawsuit, probably coming.

[hotel7473]

As expected, NAV up to $1.45. We are now trading at a large discount.

[huecares1]

Scott

Declaration and payment of future distributions is subject to approval by the Fund’s Board of Trustees. Future distributions will be made if and when declared by the Fund’s Board of Trustees.

It's unknown it seems

[Scotttrader80]

Have you seen any info about what the dividend will be after the RS?

[hotel7473]

Down 11.5% today, but the NAV will increase. I’m telling you, the RS is not a bad thing. Assured they won’t be delisted and opens up the ability for institutions to once again own it. I’m just going to let all the noise dissipate.

[Scotttrader80]

https://markets.businessinsider.com/commodities/news/crude-oil-price-up-70-dollars-wti-overcut-production-opec-2020-6-1029279527

[creede]

Hey hotel,

Thanks for the great info. Just gave you a follow.

[AlwaysRed]

June Divvy and R/S info. June Divvy is .0225%:

https://www.benzinga.com/pressreleases/20/06/g16194532/center-coast-brookfield-mlp-energy-infrastructure-fund-announces-quarterly-distribution-and-revers

[hotel7473]

If the market would have hated this news, you would have seen much higher after hours volume. Is it a reverse split? Yes. Is it necessarily horrible news? No.

NAV currently sits at $1.36. So we are trading at a small premium at $1.40. If the reverse split would happen today, we would open trading at $14 and NAV would be $13.60. You would just have one tenth of the shares you originally had. But your overall value remains the same.

The big boards act much differently than the OTC. OTC reverse splits are usually followed by continued share dilution via the company or CEO. The big boards tend to reverse split to avoid delisting because of the $1 share rule to stay listed. (Various other reasons as well). CEN is not going to dilute the share count. They do need to get their share price away from that $1 threshold though. Thus this reverse split.

I do believe there is going to be some volatility. However, what matters is NAV. Just keep your eye on that and monitor if we are trading close to it.

[Scotttrader80]

They could have announced they were closing down like AMJL ROYT did earlier in the year. Companies do what they must to keep the lights on.

Might be a continued pop for the dividend x date but stop losses tripped down to $1.20

[creede]

That's what I thought but the stock went up after the news.

Could it be because nobody really wants it to dip below $1?

[creede]

Gotcha. Thanks

[Scotttrader80]

Forward split gooood Reverse split Baaaaad

[Sone]

I’ve seen some go down after a RS but not that low lol but I’ve also seen some hold the price share after a RS so it’s a gamble but what is gonna make the difference is what the dividend will be when they announce which will determine the outcome

[creede]

Gotcha.

Is this one of those cases where a r/s is a good thing?

A reverse split is the kiss of death in the OTCM (see CR_GE today).

Since CEN is NYSE is this "apples to oranges" and we don't have to worry the stock will collapse to .05 after the divvy is paid?

lol

[Sone]

I’m thinking after the .0225 payout it goes to 0.07 or higher. I think the .0225 is just for the last month of the quarter

[creede]

So that's after the divvy.

If we wait for the divvy payout date, won't the stock tank right after that?

[creede]

Nevermind. I see the news now.

Some moderator I am.

lol at me.

I resign.

https://www.otcmarkets.com/stock/CEN/news/story?e&id=1619390

[Sone]

July 2

[creede]

When is the r/s coming?

[Scotttrader80]

Thats too bad, they were a nice swing trade

[Sone]

Where have you been .. they cut again after the .03 and also a reverse split

[Scotttrader80]

where have you been? they opted for a divy cut to .03 cents monthly then decided to make it quarterly starting this month. LOTS of monthly payers have switched over to quarterly to reserve bread, its the new norm unfortunately.

[Sone]

Sooo now CEN dividend is 6% ?? wtf

[creede]

Hi Hotel,

thanks for the info.

[hotel7473]

From the form N filed on Friday. (all numbers as of 3/31) Total assets of $75.5M. Total liabilities of $22.2M. Leaving net assets of $53.3M. As they alluded to earlier, the private equity in KKR Eagle now makes up 56% of the total fund. The value of this private equity dropped from $44.3M on 12/31 to $29.9M as of this report.

My glimmer of hope.......they only value the KKR Eagle holding every Quarter. With the improving environment in the energy & MLP space, we should see a somewhat significant jump in the value of the KKR Eagle assets and the funds NAV for 6/30. (that assumes the improving outlook continues) Take it for what it's worth. Just my opinion.

[Sere37]

Will be @ 50c shortly......

[Scotttrader80]

re-read what I said slowly, NO ONE mentioned anything about 50 cents anything

[Sere37]

50c next week?? I'll take it :)

[creede]

Hi Scotttrader,

Sounds good to me. I added some a few ago near the bottom. Glad it’s looking stronger. Will add more.

I been reading about Funds a little bit and some say that past performance in funds can be a good future indicator if the same people managing the fund.

I’m hoping CEN returns to its glory days that were not that long ago.

[Scotttrader80]

Good buy, Oil is up to $29.00 a barrel, up almost 100 points from the negative -53.00 a month ago. Most oil companies are profitable with $40.00 a barrel. CEN wont change their divy structure but the could raise its quarterly as oil continues to rise.

[creede]

I picked up a few more shares on Friday.

Would have done better getting them earlier in the week but I got greedy thinking it would drop below $1.

I am going to keep adding in these levels when I can.

Seems to me those that manage the fund have proven they know what they are doing. High hopes this returns to the .10 divvy in time.

[Scotttrader80]

YES! June starts the quarterly dividend

[creede]

Price looking stronger. That's good for the fund but bad for me.

I was looking to add under $1.

Guess I will wait and see what happens. No rush now I don't suppose since the next divvy has been delayed.

[ErnieBilco]

TDAmeritrade put mine in this morning, 3 cents per share - last of the monthly now its moving to qtr.

[huecares1]

Ernie.....Not yet!

[AlwaysRed]

I did not, but I have mine in a DRIP so it could take a minute.