Replies to post #227 on Center Coast Brookfield MLP & Energy Infrastructur (CEN)

[Scotttrader80]

They could have announced they were closing down like AMJL ROYT did earlier in the year. Companies do what they must to keep the lights on.

Might be a continued pop for the dividend x date but stop losses tripped down to $1.20

[hotel7473]

If the market would have hated this news, you would have seen much higher after hours volume. Is it a reverse split? Yes. Is it necessarily horrible news? No.

NAV currently sits at $1.36. So we are trading at a small premium at $1.40. If the reverse split would happen today, we would open trading at $14 and NAV would be $13.60. You would just have one tenth of the shares you originally had. But your overall value remains the same.

The big boards act much differently than the OTC. OTC reverse splits are usually followed by continued share dilution via the company or CEO. The big boards tend to reverse split to avoid delisting because of the $1 share rule to stay listed. (Various other reasons as well). CEN is not going to dilute the share count. They do need to get their share price away from that $1 threshold though. Thus this reverse split.

I do believe there is going to be some volatility. However, what matters is NAV. Just keep your eye on that and monitor if we are trading close to it.