jugs
6年前
When I sold off my position in DKL, I got $27.30/unit. Add in 75 cents received in one transaction involving a distribution and that means I effectively held my own with just a slight gain overall. This pick is trading now at $28. I placed the cash into NGL at $10.04 with a sweet gain of about $2.25.
Looking out at the barren field inhabited by DKL now, I believe that what I'm seeing is an unloved stock. That doesn't explain my interest in the stock, or lack thereof. This is good for steady income and a solid yield.
Those don't amount to sufficient qualifiers for me but certainly could offer allocation diversity for others.
My problem with DKL is one of distrust. Aside from issues emanating from the dissolution of ALDW and DK's denial of our right to the final two distributions, DK had announced on more than one occasion that there would be dropdowns resulting from the absorbing of ALDW assets---drops that would prove to be immediately accretive to DKL and, therefore, unitholders.
None of this has come to pass. That leaves a bitter taste in this investor's mouth.
jugs
7年前
Haven't posted here since the first week of the month so, herewith.....
Adding things up as I explained in a post on the DK board earlier this morning, I'm of the belief that anything that can happen in this market may well do just that, and sooner than we'd like. My overriding concern is that of protecting my ability to reorganize when the market takes a serious tumble for the worse. It will happen, I'm absolutely positive. And now is the perfect time to be prepared and it calls for preparing.
Thus it is that I just sold 300 DKL out of my former 700 units position. I lost a little on this trade but that's not propelling me, not in the least. What I'm seeing is that I no longer have any trust in the integrity of DK's management team. They didn't hesitate to screw us ALD@W unitholders out of our last two distributions prior to the February 7th completion of the merger with ALON USA.
And now as I move into more and more cash, I'm selling off assets in order to be in position to take advantage of any partial market collapse coming our way. As explained in the post at the DK board, I typically will maintain about $20,000 in dry powder in a checking account working in tandem with my Ameritrade brokerage account. It's an ACH-enabled account---meaning that I can process electronic cash transfers free of charge by authorizing either the brokerage or the bank to effect any desired transaction. ACH= Automatic Clearing House.
As of this moment I'm holding $150,000 in cash in the checking account. I've never maintained that high a level of cash readiness before, not in nearly a quarter century of depending upon the stock market for my sustenance.
In selling off part of my DKL positions, I'm setting cash aside as already stated. More notable than that, however, is my not trusting DK to act in my best interests. For that reason I'm no longer prepared to stand with the company.
Earlier on, I sensed ALDW assets would be dropped down into DKL. DK has very recently affirmed that this would be the case. But as I think about it, I'm realizing that DKL will never be anything more than an opportunity for management to enrich itself through the usual corporate means. It will probably occur on the back of holding DKL responsible for more than true drop-down values, thus---once again---enabling DK (the parent) to pimp with DKL both the bait and the victim. And for this reason I'm leaning towards vacating all things "DK" in their completeness.
This is not a company I can respect. Values are everything for me in my world. When I find I can't be comfortable in my skin and in the environments I inhabit, it's time for me to change my skin or my environment.
DKL is definitely not the company I'd earlier envisaged. And I don't believe it can rise to a higher standard as it's led by the same folks who never saw fit to publicly address responsibility for the issue of ALDW's final two distributions.
This is dirty business even for this retired Investor Relations VP.
My best to all here! I wish I had a happier message but it is what it is.
jugs
7年前
Just now posted the below as it's proof positive that we former ALDW unitholders are, indeed, entitled to our final two distributions. Following is an exact cope and paste from the SEC closing material officially declaring the completed merger and terms and conditions therein:
(The highlighting is mine.)
Busy going through SEC filings affecting us as owners of (the formerly recognized) ALDW and now officially Delek (DK).
This will be found in the final explanation of terms and conditions surrounding the merger:
Rights of Holders of MLP Public Units. Each MLP Public Unit, upon being converted into the right to receive the Merger Consideration pursuant to this Section 2.1(c), shall cease to be outstanding and shall be canceled and retired and shall cease to exist, and each Holder of such MLP Public Units immediately prior to the Effective Time shall thereafter cease to be a limited partner of MLP or have any rights with respect to such MLP Public Units, except the right to receive the Merger Consideration and any distributions to which former Holders of MLP Public Units become entitled all in accordance with this Article II upon the Surrender of (A) a certificate that immediately prior to the Effective Time represented MLP Public Units (an “MLP Certificate”) or (B) uncertificated MLP Public Units represented by book-entry (“Book-Entry MLP Common Units”), together with such properly completed and duly executed Letter of Transmittal and such other documents in accordance with Section 2.2.
jugs
7年前
Following is a post I just placed at the ALDW board. We all need to read it and act upon it, please! Thank you for taking responsibility.
Everyone of us who held ALDW prior to the big swall need to call Investor Relation at Delek and ask whatever happened to the final two distributions? Uzi stated in print that these would be awarded.
Call:
Kieth Johnson @ 615-435-1366.
Just ask when the distributions will be issued, it's that simple.
If you get the answering machine as I did, leave your name, telephone number and the question: Where are the two final distributions for ALDW unitholders?
Do this and you'll be doing all of us an important service.
Please get back to me when you've done your good deed. I'll keep a record and then take steps after two weeks or so. For the record, I've not received a return call from MR. Johnson following my call on Monday morning at 7:30am, an hour before the DK conference call.
Thanks, folks!
Those of us due money will relax when these loose ends have been extinguished.
jugs
7年前
Volume has edged up, that's a good sign. But the downward pressure is not to be believed. We've seen these mounted efforts before, I'm recalling NGL. I think that particular campaign has now officially ended, happily.
I read through much of DKL's latest filing. The numbers are wonderful. I listened to Uzi's remarks during the CC, he's upbeat as could be. And this month dropdowns into DKL will be completed. Financial terms are stated clearly. Add everything up---plus the high yield, increasing distribution base, and I can't find anything not to like.
jugs
7年前
Contrary to ever-flowing nonsensical opinions regarding the potential for dropdowns of ALDW assets into DKL, we now get this from DK's head honcho:
With the completion of the acquisition of Alon USA Partners on February 7, 2018, we expect to move forward with the drop down of the Big Spring assets during the first half of 2018, subject to the completion of the customary conditions related to the drop down process."
I view this as the ideal time to begin considering holding larger stakes in DKL. I added a few a couple of weeks ago but still have just 700 units. If I can swing it, I'll be adding pronto, before the community catches up to the rest of us here.
Happy hunting!
jugs
7年前
While I'm in the believers' camp when it comes to dropdowns filtering into DKL, I have a feeling (and nothing more) that it could take several months before we find dropdowns actually occurring. Proposed litigation, if it were to catch a tailwind, would add voluminous sand into our TOP*.
The legal entanglement would be strenuous at the least, were a band of dissenters to gain traction requiring a mess of undoing rivaling that of rebuilding a pound of pecan shells to their former body shapes. I'd prefer to ride things out for several months until the fog has lifted.
It's enough for me that management has declared there would be dropdowns. Also, the distributions are growing, albeit rather slowly, but at least we see unitholder respect in action.
Those of us who were ready to take on the challenge and diverted ALDW capital into DK and DKL are enormously richer for it.
I'll be patient. No axe to grind here, just blissful summer breezes. And I'm hoping to find I can add a few more DKL units along the way.
Good fortunes, all!
*Tank Of Prosperity
pete807
7年前
Good AFTERNOON (here), but it's morning in many places yet. Hawaii for instance.
Our ideas on all those companies we moderate are expressed daily, in unison mostly positive, and for me at least, I won't add to DKL until: 1. I see the volume increase, and 2. The parent adds the expected asset dropdowns which will add to both volume and DCF.
Good for you you made money on Google. I am a critic of GOOG as I dislike the mining they are constantly doing to my emails and every communication to sell the data to advertisers. I have installed adblock software for relief from them. I wouldn't short GOOG either cuz I don't short companies, and concentrate on positive successes. Google's success comes at a price to some reluctantly mined by their software. I will miss all the gains by the top 5 drivers of the market at their bubble bursting highs! FB, GOOG, AMZN, NFLX, AAPL. Plus I do not think Tesla with no earnings ever will survive the big carmakers move into EV. Sadly it will end imo similar to its namesake Nicola Tesla. Who pays for the big hiccups with SpaceEx?... WE do! Elon Musk wants to return to Mars... where he is from.
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