Isn't it interesting that we find ALDW climbing as it is at the moment? We're presently ahead of last night's close by 2.58% or thirty cents. That's quite a lot, imo.
In trying to understanding the inordinately large rise, the most obvious explanation might be the pending distribution. In fact, at the Seeking Alpha board where I have a small following, I posted a rebuttal to the notion that an investor might consider holding onto a position in CVRR. I spoke briefly about ALDW's stunning success and that there's still time to get in for distribution purposes as we don't go ex-distribution until the 15th of August. I disclosed the fact that I control 25,000 units of ALDW, hoping to make altogether visible my confidence in this company. I offered no defenses for MR. Icahn; quite the contrary, really.
With two whole weeks to go before we go ex, I don't find it plausible to assume that today's leap higher is predicated on dividend hunters wishing to get on the bandwagon. It would be quite different were we just a day or two away from going ex. A perfect example of this would be CEQP which is up nearly a whole dollar at the moment, and it goes ex-D in two days, paying 60 cents. Coincidentally, this company filed an 8-K earlier today stating that DCF amounts to a 1.5 times coverage factor. These are strong clues if one analyzes the whys and wherefores of rising valuations in an MLP.
Such is not the case in evidence where ALDW is concerned for there've been no 8-ks of which I'm aware. And, again, we've got two whole weeks before the yield wagon focus shifts to quarter 3, so I see no imperative driving buyers to start or continuing to build out positions at this point in time. However, I find today's action exciting for certain.
Happy hunting! And if things hold up, happy burping, too!!
