Replies to post #20 on Delek Logistics Partners (DKL)

[jugs]

You make a lot of sense.

You might look over your results YTD and determine where your gains have come from. If the pendulum swings more from divvies, then you might look at why.

I make my gains from appreciation although distributions from NGL are handing me $35,000/yr so that works, too.

Because I do better via appreciation, I decided today to launch a small position in DKL much as you're doing. I'll wait for a serious dip before doing so.

[jugs]

Initially I wasn't even considering taking a position, but then I realized that the DKL we're seeing today is not the DKL to emerge following DK's (Daddy's) drop-downs yet to come. There's no way to predict size but the MLP will definitely be growing larger.

I'm at 600 units of DKL myself and if they retreat below my cost basis which is just over $28.42, I'll be adding---but carefully, as I'm readying myself for a bunch more of NGL which I'm expecting to drop to $11.50 and under.

DKL is like a petty cash drawer---full of a sweet 10% yield yet not representing so much money that I'll find myself hamstrung due to insufficient liquidity as other more exciting opportunities arise.

Still, when the dropdowns do occur, I'm expecting a strong surge in DKL. If something else is screaming at me to buy it? I'll be going to DKL for cash. It should be noted here that I won't be a buyer of anything with former DKL money unless I see very clearly that my proposed action will yield a far greater return than DKL's 10% yield provides.

I'd imagine you're seeing this in similar fashion as you know how to steer your ship.

Happy hunting!