Replies to post #63 on Suncoke Energy Partners fka SXCP

[couldbebetter]

Couch, The 8 1/2 is from a comment from a Seeking Alpha article, and the person did not provide a source so it may be just be an opinion. However, if you were to figure out the distibution from the 8 1/2 it would be 11.765%, assuming a 100% payout. I think I read that SXCP had distributable cash flow of $40 million for the 3rd qtr. So, 40m X 4=$160m
$160m X 8.5 = $1,360 m = 29.44 per unit. 46.2 units total.

With management buying units at nearly 18 for cash obviously they know that they are worth more than that. Still, I think they would offer only a 10-20% premium over 18. So, 19.80-21.60 would be my guess as to what they would offer today.

Should the market experience a flash crash or some massive selloff, this would be a good stock to buy. Maybe at some point if SXC gets high enough, they could use the same or even a lower ratio to get SXCP at a higher price than offered previously.