Northern Tier Energy LP (NTI)

[jugs]

My hunch is that investors pretty much know you don't get a 19% yield with a pick barely a few quarters old when most of its peers aren't able to sport even an 8%-9% yield. Back-of-the-napkin math tells me this stock should double within a year or so, given that it is committed to handing out a minimum of 90% of the net and appears likely to sustain the current payout rate.

This imbalance with respect to typical MLP payout history originally led me to start a position in NTI. I sold a lot of other picks to firm up a sizable position. Reading about the earnings estimate of just 14 cents this morning as opposed to the previous 45 cents? That had me nervous. Fortunately I can now await the $7,500 infusion due in a couple of weeks.

Life is sweet at times.

Jugs
















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