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Happy Thanksgiving to all of us NGL faithful. May you and your families have a safe and great day!
Agreed! Thanks Pete!
Sorry, I wasn’t able to jump on the call. $150 milly share repurchase?????
I agree that this is an overreaction, but as of last week a poll had the proposition passing. The sitting governor even came out saying he was ready to hold a special session of legislature should the prop pass. I believe there were some nervous nellies in Colorado until last night.
Colorado Prop 112 failed to pass yesterday.
Looks like there’s quite a bit of premarket action on most O&G plays with any footprint in Colorado. Could be a nice day for us here in NGL land.
I’ll take it with a smile on my face!
What a market this is!! Haven’t seen anything like it. No real haven asset to be found. I had one utility CEF hold up today and that’s it. Still love our NGL. Just wish I would have waited a few more days to pick up the last 18k units.
Oh well. Hindsight can leave you on the street with an empty cup.
NGL will have its day. ( if not a year or two )
Thanks Jugs! As they say............when there’s blood in the streets.
Good luck to us all.
I must be crazy! Picked up another 18,000 units at around $10.15. At least next months payday will be nice!
You were correct jugs. We went ex on 8/7 with a 8/14 pay date. So Nov will be our next juicy dividend month.
I’m a firm believer that history tends to repeat itself. Using a 2 year chart as guidance, this week should be a pivot point.
I will be looking for opportunities to add here. In my mind, the recent pullback has no merit.
Good luck to us all.
I get time and sale data on Schwab’s Street Smart Edge platform. Unfortunately it is cleared on a daily basis so I can’t go back now. However, I did see those AH trades go through on Friday. Just happened to be sitting in front of my laptop at that time.
For what it’s worth, I too saw what Harkmi was referencing. It looked like a roughly 2.5 milly buy at $13.15 after hours. Followed by a 6 (not a typo) share sell at $13 about 10 minutes later. Could be why your brokerage is showing a $13 close??
Our little company was just highlighted in a Contrarian Outlook article:
2 Dividends Over 10% That Are Actually Secure
David Peltier, Senior Investment Analyst
Updated: August 10, 2018
When it comes to dividends, any stock yielding more than 10% these days needs to be taken with a grain of salt. That’s because bigger isn’t usually better when you’re talking about dividend yields.
The FOMC has targeted short-term rates of between 1.75% to 2.00% in the U.S. and the yield on the benchmark 10-year note is hovering around 3%. Almost any other income investment can be priced based off these rates, depending on how much extra risk you’re willing to take on.
Historically-speaking, any time a stock is paying more than seven percentage points above the AAA-rated, government-secured debt, investors begin to worry if the dividend could be cut.
However, not all dividends above 10% are too good to be true. Just two months ago, I highlighted Global Partners (GLP) and its 10.8% annual yield. The stock is up 14% since and has also increased its quarterly dividend.
As with Global Partners, the key is to find high-yielders where the company generates enough cash to cover the dividend. Along those lines, I’ve found two more stocks with double-digit yields that appear to be safe.
Secure 10% Dividend No. 1: Yield Rising for Right Reasons
AG Mortgage Investment Trust (MITT) is a real estate investment trust (REIT) that invests in residential mortgages and related instruments. The company also appears to be a rare case where its dividend yield isn’t in the double-digits because of a cratering stock price.
Excluding one-time items, AG Mortgage earned $0.55 a share in the second quarter, which was $0.03 ahead of the consensus analyst estimate. The upside was driven by lower costs. In addition, about half of the company’s investments are floating rate, so it won’t get crushed by any future rate increases like some mortgage REITs.
AG Mortgage’s profit last quarter was more than enough to cover the quarterly dividend of $0.50 a share (10.8% yield) that management actually raised in June. In addition, the company is sitting on an additional $1.57 undistributed taxable income, which is like a rainy day fund that could sustain the dividend, should future profits dip.
Secure 10% Dividend No. 2: Simplifying to Focus on Growth
NGL Energy Partners (NGL) is a diversified firm that is re-focusing efforts on its fastest growing businesses in the energy market. Back in May, the company sold its retail propane operations for $900 million.
Management is using the proceeds to pay down debt and also invest in growth opportunities within NGL Energy’s wastewater disposal and oil logistics businesses. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 106% in the most recent quarter, with the wastewater disposal operations driving growth both organically and through acquisitions.
The stock offers a dividend of $0.39 a share (12.7% yield), which management cut back in 2016 but once again appears to be on solid ground. NGL Energy is targeting 1.3x coverage of the current payout with cash flow in fiscal 2019 (ending June).
After selling the propane business, management is also closer to its target of 70% fee-based revenue, to help limit future commodity price volatility. The re-shuffled company still has a lot to prove investors, but the outsized dividend appears safe.
Jugs, so happy to hear you received a clean bill of health. May God continue to bless you and your family.
Agreed. Jugs has been very helpful, and quite a leader, over on that board. I’m very heavily committed to NGL right now, but hope to get back here when the opportunity presents itself.
Best of luck to you!
I sold at $31.50 or so last month. Needed to fund another budding opportunity with great yield and a ton of upside. If your interested just look at my posts over the last month. It will lead you there.
Looking good again here though! I’ll be back given the right entry point. I still feel this is a great long term hold.
Somebody liked something they heard today. Nice 500,000 unit purchase just after the bell.
Mike did indeed almost giggle a couple times when asked about the future. He knows much more than he’s willing to elaborate on. Sounded like a pretty happy CEO.
Great CC!
20% increases in EBITDA PER QUARTER for the remainder of the fiscal year in the water solutions segment.
I’ll take it!!
Agreed jugs. Most investors are unable to read past the first paragraph of a earnings press release. Let alone decipher all the positives that are included in this release. Debt reduction will be realized on paper next quarter, EBITDA doubled Q over Q within continued operations, and all impairments and judgements have been accounted for.
Hopefully they spell this out for everyone on the conference call. Obviously the market is unable to do so for themselves.
Just thinking out loud here, but I have a hard time believing management would give us any bad news in the pre market earnings release next Tuesday. With it also being ex-div day they would only add to a major price decline. Just don’t see that happening.
Then again, what do I know. Lol
Looks like allot of last Friday’s flip shares are trying to exit in this $12.50-$12.60 range. A break above this could get us really moving.
This horse is trapped in a barn. Just bouncing back and forth from one door to the other. Perhaps someone could open the north side door. Thoroughbreds like to run!!!
Allot of tech money coming unhinged today. Let’s see if some of it finds a new home in our much maligned sector.
Jugs,
Wishing you nothing but the best and a clean bill of health!
Lol. Either one works. I thought you were referring to the POS flies that are holding this back.
Agreed! Something is definitely holding it in this channel. I’m not much of a chartist, but the flag on this is getting extremely long.
The spring is beyond ready to let go.
Picked up another 16,700 units this morning. That’s going to be it for me. Looking forward to that nice divy next month.
Best of luck to all.
Leftovers, I believe you may have to change footwear again quite soon for those $32s. At least you can afford to go out and buy something very nice. Lol
Have a great weekend!
Jugs, thank you for the nice overview and for your guidance and support on this board. I think I am able to speak for all when I say it is much appreciated.
A very nice week it has been! My 23,600 units at a $10.93 CA are looking quite sweet at this moment. I am so very glad I jumped in this pool with both feet.
Here’s to a great weekend for all.
Judging by after hour trading, we are in for a big day tomorrow. Looking forward to it. Loving the decisions made by management that were reviled today.
Massive bear raid and profit taking happening across the energy sector. Looks like NGL is seeing some support at this level however. Wouldn’t be surprised to see a reversal in the sector this afternoon. We shall see. GLTA
Not to jinx it, but 30 is within sight. Go OHI!!
Thank you Jugs. Much appreciated. Best of luck to us all.
Absolutely. Good to be on board.
I have been panning through the financials, investor presentations, etc. for well over a month now. The current market value just does not make sense when you look at their enterprise value. It looks like they have had some bumps in the road, but are making changes proactively now instead of reactively. They are utilizing proceeds from sales to pay down debt from highest to lowest rates.
I believe the worst is behind them and the future looks bright given the current tailwinds in the O&G sector. This is a value play with an outstanding yield to boot.
Thanks for the welcome. I appreciate it.
Ok. Jumped in with both feet this morning. 23,500 units. Looking forward to the upcoming earnings release and guidance. Good luck to all and go NGL!
Yes indeed. Very nice week. OHI