I hope all eyes are peeled on ALDW---trading at nicely under $24. People just don't get it---thinking that lower oil translates directly into lower profits for the refiners. Now, while the crack spread ain't what it was until fairly recently---the fact is that we have every reason to expect that the next distribution will be fairly hefty. And as I see it---suppose payouts are less, even 50%? These are still great income producers for those comfortable owning them.
They are not risky insofar as going concerns may be. Instead, it is the fact that they are "variable" payers. We never know what the amount of our income production will be until corporate guidance is issued. And this is on a quarterly basis without benefit of long term knowledge as is often the case with companies such as GE or BAC
where investors often know what to expect for the rest of the year.
I'm OK with that. What the heck---this isn't my only income source. And with positions in all three MLPs, I'm feeling well enough cushioned.
I hope everybody here recognizes the "rolling churn" evident in ALDW today. We've seen it in NTI, certainly. And CVRR is hardly a stranger to it. I'll bet that a check of volume for each of these during episodes of churn will reveal that each MLP is, indeed, being played---aka manipulated. However, I think I'm not any better, stylistically, for here I am---taking advantage of these swoons, however they may be induced or by whom or what.
We are here because we're hungry for self-enrichment. It can be a beautiful thing---this self-serving act of foraging. And I love it!
