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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: 249443 who wrote (12619)	6/8/2001 12:23:49 AM
From: TimbaBear	Read Replies (1) \| Respond to of 78526

mrcjmoney Thank you for your kind words. I will look at Kaneb by the week-end. I am pretty swamped at work. I've looked at the last three years 10K numbers, but want to look at the recent 10Q and "Management's Discussion" before engaging in one of my own. Timba

To: 249443 who wrote (12619)	6/9/2001 1:48:38 PM
From: TimbaBear	Read Replies (2) \| Respond to of 78526

mrcjmoney Kaneb (KAB) Interesting looking company. It is a limited partnership and I'm not sure if I'm aware of all of the implications of that for me as an individual limited partner. Anyone with insights regarding that and would like to share them, I would appreciate it. I have a basic understanding (perhaps more than that) of the structure. Just not sure if the distributions from a limited partnership are treated any differently tax-wise than dividends from any other company. I did notice that there is a provision in law (Delaware law, in this case I think) where if the partnership distributes too much cash, the limited partners may be charged back for the excess distribution for up to three years after the fact, but I'm not clear on how often that happens in real life. So I'm looking for a handle on how to evaluate it for risk. There seems to be a discrepancy between the number of shares listed on Yahoo and the number of limited partnership units listed on the filings. I will use the filings as the source. I see that they filed an S3 on 6/5/01 to sell 1.9 million shares. None of the proceeds to go to Kaneb. The bulk, 1.8 million +/- from one company. Do you have any insights on that? Was that from a previous acquisition or what? The transaction doesn't look to be adding to the total number of partnership units outstanding (but I could be wrong here), rather it looks like just a large sale by one owner. As such, it wouldn't be dilutive, but it might be depressing on the share price until that extra capacity gets absorbed. Would appreciate your thoughts. Timba