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

To: Paul Senior who wrote (62344)	8/9/2019 10:12:00 AM
From: Elroy	Read Replies (1) \| Respond to of 78714

Why KNOT and not CPLP? CPLP yields 11%.

To: Paul Senior who wrote (62344)	8/29/2019 10:09:54 PM
From: Elroy	Respond to of 78714

KNOP reported another solid quarter, but the shares don't seem to respond well. I read over their conference call, and noticed this. Any knowledge of the IDRs? ---- Robert Silvera Are there -- one of the question for me? Are there any other, or are there any incentive distribution rights in existence. I have noticed [ph] one way or another? Gary Chapman Yes. There are. Robert Silvera Is there any outlook for that being eliminated? Gary Chapman It's -- we constantly talk about that. But at the moment, we have no plans. I think at the moment it's not, the -- sort of top of our radar, top of our list to do that or to address that, first. --- I also notice this response to a question about expanding the distribution going forward: Robert Silvera Hey, once again, after hearing about the three dropdowns, my question is this, if you begin to take those dropdowns, do you anticipate growing the dividend at all? Gary Chapman Good question, Robert. And probably like to grow the dividend and the distribution. I mean, that's what the, the purpose of we're trying to do here is be successful and grow the MLP. I think at the moment, however, given where the market is, we can't make any promises on that. And we don't want to give away our equity, if you like, for fear, if not being able to then grow the MLP in the future. And today's news given where our price -- unit prices, we don't have the moment to see a growth of the distribution. Now I can't say that will stay the same forever or even in the next year, but at the moment we don't have an intention to increase the distribution and expand the vessels. Robert Silvera Okay. So, if those new vessels come on, we can still anticipate basically the same dividend? Gary Chapman I think that's the baseline position is perhaps a way of saying it, in that. ---------------- This is something I've not understood with a lot of these shipping MLPs. The management always talks about "growing the MLP" which I think means enlarging the fleet. But the unit holders don't care about the size of the fleet, we care about the distribution amount (mainly) and the unit price (secondary). Why does management really really want to grow the fleet, but not seem focused on growing the distribution amount? Any idea? If they are able to take drop down ships from their sponsor with extended multi-year charters in place, but NOT increase the distribution as a result (or at least work toward a distribution increase) it seems like unit holders should care less about "growing the fleet". - KNOP has had a high of about $28 and a low of about $10 over the past 6 years. $18.50 does seem like a nice entry price with 1.45x coverage of a dividend that is currently yielding 11%.