GEL

Stock Talk

Bob Cecchini

Bob Cecchini

Igor,
I bought GEL for retirement income in Dec, 2013. Although the value of my shares has dropped 40%, the distributions have continued to increase and GEL is now yielding over 9%. From an income standpoint, GEL is performing as I had originally hoped, but I'm concerned given your sell recommendation. I understand the recommendation is based on lack of growth potential, but do you also think that the distribution or at least the continuing distribution increases may be in jeopardy?

Thank you.
Bob

Igor Greenwald

Igor Greenwald

I do think that’s a growing risk. Whether one would bite the bullet here or not would depend on one’s tax basis among other factors. but three of the four business segments (everything but offshore pipelines) are seeing a significant margin contraction that management expects to continue. One can get the same yield at the merged ETP with higher distribution growth plans, fewer headwinds and more upside potential, I believe.

Tom Light

Tom Light

Good answer Igor ! We have has the GEL itch too- yield is very tempting and hard to forget what a growth company this was a few years back.
ETP yield is good- but looking to diversify some capital from this company .

Michael Dunn

Michael Dunn

Igor,
Some time in the past someone reccomendid Seaspan. It also pay a nice dividend, but price is lagging. Any thoughts on holding or selling.
Mike

Igor Greenwald

Igor Greenwald

Hi Mike, I think you may have meant Seagate, and if so that was me and I sent out a Sell alert on it yesterday after it tanked on poor earnings. Sagate ticker is STX.

Michael Dunn

Michael Dunn

NO I really did mean Sespan SSW . I don’t rember who made the recommendation. But I did buy the stock and it is way down however pays a big dividend. It is the large oil tanker shipping company.

Mike

Igor Greenwald

Igor Greenwald

Michael Dunn

Michael Dunn

Thank, that was it. I missed that small paragraph whin I did the surch. I guess you do not have an opinion on this one.

Mike

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