Replies to post #1714 on Northern Tier Energy LP (NTI)

[jugs]

Thanks for posting the remark from David Lamp. You got me to rethink but I'll bet it's not what comes to mind!

The WNR offer is truly a tender. It tells me that NTI will operate as a branch of WNR but it will not be held by the retail crowd. The only way to own NTI is thru the parent company. Effectively, it cannot operate as an MLP under the new ownership.

When we first got the news, I recoiled, fearing the worst---that I'll be losing a big chunk of my slam-dunk side of three portfolios. With an average of 6,000 to 9,000 units since the IPO, a 16% yield comes out to $30,000 yearly. I trade a minimum of three times during the year and bump it up nicely.

When NTI is officially sworn in as WNR's exclusive territory, that income is gone. Totally gone. Their offer is actually a tender, meaning, "Sell to us or we'll take it anyway because there's probably enough suckers out there to accept the piddling cash and a taste of the good life via miniscule share ownership of Big Daddy."

What I'm thinking here is that the public is probably expecting WNR to continue doling out our 16% annually with the difference being that they will be getting a piece of the action before we retailers do.

They are wrong! In my case, $30,000 wrong at a minimum.

Am I missing something here? When I read [i"... to acquire the remaining Northern Tier Limited Partner units not already owned by Western Refining."---I hear THEY will own it. That means I don't/can't/will not!!!!!


True as you're pointing out, this may not happen for awhile. But I'm thinking about the huuuuge pothole sure to take shape when the announcement of the tender's completion and I smell nothing but the acrid odor of my capital appreciation going up in smoke because I left my sorry ash on WNR's Doorstep of Trust. Rest assured, I'll continue playing/trading NTI, taking advantage of appreciation, building opportunity or preserving; and will stalk CVRR and ALDW along the way for they are my primary trade-offs.

[jugs]

Thanks for posting the remark from David Lamp. You got me to rethink but I'll bet it's not what comes to mind!

The WNR offer is truly a tender. It tells me that NTI will operate as a branch of WNR but it will not be held by the retail crowd. The only way to own NTI is thru the parent company. Effectively, it cannot operate as an MLP under the new ownership.

When we first got the news, I recoiled, fearing the worst---that I'll be losing a big chunk of my slam-dunk side of three portfolios. With an average of 6,000 to 9,000 units since the IPO, a 16% yield comes out to $30,000 yearly. I trade a minimum of three times during the year and bump it up nicely.

When NTI is officially sworn in as WNR's exclusive territory, that income is gone. Totally gone. Their offer is actually a tender, meaning, "Sell to us or we'll take it anyway because there's probably enough suckers out there to accept the piddling cash and a taste of the good life via miniscule share ownership of Big Daddy."

What I'm thinking here is that the public is probably expecting WNR to continue doling out our 16% annually with the difference being that they will be getting a piece of the action before we retailers do.

They are wrong! In my case, $30,000 wrong at a minimum.

Am I missing something here? When I read [i"... to acquire the remaining Northern Tier Limited Partner units not already owned by Western Refining."---I hear THEY will own it. That means I don't/can't/will not!!!!!


True as you're pointing out, this may not happen for awhile. But I'm thinking about the huuuuge pothole sure to take shape when the announcement of the tender's completion and I smell nothing but the acrid odor of my capital appreciation going up in smoke because I left my sorry ash on WNR's Doorstep of Trust. Rest assured, I'll continue playing/trading NTI, taking advantage of appreciation, building opportunity or preserving; and will stalk CVRR and ALDW along the way for they are my primary trade-offs.

[pete807]

Thanks for posting the CC. They provided some short term confidence and I will continue to hold at least 2/3 of the units through the end of the year. It has been a super income producer, but it will be over for us all too soon.
It will be hard for the conflicts committee to find any merit for us minority players especially with the strong performance and low offer. Maybe there will be another offer... or improved bid.
I think they (WNR) have a majority percentage of the vote in their court. They need 13% to get to 51% and I suspect they had it before they played their card.
I will also wait for a pull back at ALDW and keep a smaller stake than here in CVRR. GLTA!