oks

[lewie2004]

I have my kids in this stock for their education ira's. Bought when it was northern borders around 42. Pays them a great dividend. Does anyone own or have a long term opinion of this company.

[nodoodahs]

The 'master limited partnerships' (MLPs) trading in the U.S. are in the energy transport business.

The advantage of the business is that its cashflows are relatively uncorrelated to the broader market or to the prices of energy, as they are providing transport. The advantage of the structure is that the partnership pays most of its cashflow to investors (kinda like a REIT in some ways), although there are tax implications. Those are also sometimes considered disadvantages LOL. Talk to a tax professional about asset location and other implications if you're interested; me, I try for total returns and just pay the dang taxes and let the accountant figure it out after the fact.

I don't know if ticker VLCCF is in that legal class of investments or not, but their overall structure appears similar to me. They transport, so their cashflows are more levered to the Baltic Dry Index and to the whims of the shipbuilding industry than to the price of the commodities they transport, and they pay out a heck-lacious divvy yield based on their cash flows.

I chose to access 'master limited partnerships' through ETFs or ETNs (ticker AMJ is an example). Many are natural gas pipeline-specific, some include shippers, some include coal. You could probably look up the holdings of one of these ETFs and find a bunch of companies in the space pretty easily.
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I haven’t seen a beatin’ like that since somebody stuck a banana in my pants and turned a monkey loose.

[lewie2004]

http://finance.yahoo.com/news/ONEOK-Announces-8percent-prnews-3931452954.html?x=0&.v=1




Anyone else in the transportation of LNG space?

[lewie2004]

It is now paying my kids a 10% percent dividend. Volume has picked up over the last 6 months or so.

[lewie2004]

Wow. Thanks for taking your time and giving me your honest opinion. That is why I havent reinvested the dividends back into this company. However, They have raised the dividend almost every quarter for the last three years.

[nodoodahs]

Taking a brief look at the financials, it appears to be a strong company. It's cheap relative to its industry in PE, PB, PS, and it's in an industry that isn't going away anytime soon. Earnings quality looks good in most years, and the insiders stepped up and bought at around this price level in August of last year.

Chart-wise, it's still got some room below it to touch the multi-year uptrend, but it also looks like support at 55. Been at a standstill for almost a year. High short ratio could be fuel for a move up if good things happen to it.

The big thing that shows on the financials is the impact of an acquisition (I'm guessing here). Expansion of long-term debt and doubling of shares outstanding about two years ago, dramatic increase in revenues.

I don't see anything WRONG with it, other than the *possibility* that it ate something that disagrees with it.

If it were mine in an IRA, I would be watching the filings and earnings releases for evidence of trouble with that. Often, when companies have shortfalls and downward projections, it is related to trouble with an acquisition. On the other hand, if it is a good acquisition, it'll show over the next year or so with expanding margins and the company starting to pay off that debt.

If it were mine in an IRA, I don't know if I'd be comfortable with it being 25% of the holding. Do you want that much in one stock or one industry? Not everybody does.
_________________
I haven’t seen a beatin’ like that since somebody stuck a banana in my pants and turned a monkey loose.

[lewie2004]

They have about 25% in oks. I liked the dividend and continue to like the dividend. It is getting ready to be declared on the 29th and I have always rolled the dividend into something else. I am thinking of reinvesting the dividend. oke(oneak) owns about 80-90% of the company, has low volume, and never gets any attention. I am just curious to the people that visit and interact with this site if anyone had any opinions on the company.

[nodoodahs]

I don't own it and haven't looked at it before today - gave it a brief once-over.

Questions for you:

How much of the IRA is in OKS?

What did you like about OKS when you bought it?

What has changed about the market, or about OKS, that makes you question it today?
_________________
I haven’t seen a beatin’ like that since somebody stuck a banana in my pants and turned a monkey loose.