Units are at about the $9.50 point so this pick is doing well enough. I have no position but I like that the stock is holding up for those who do hold positions.

Awfully quiet around here.

Nothing to say?

I hope you do well.

Not necessarily agreeing when it comes to being purchased. Often companies acquired are distressed assets. That can lead to compromised leverage favoring the acquirer.

I've never owned AMID so my hands-on experience is virtual nil. I ran across JPEP at the end of 2014, held long enough to profit, sold and then repurchased for still better gains. But then I sold as I could see market pressures were building. I didn't trust things would work out well. As it turns out I'm pretty sure I jumped the gun although I used the cash to help re-launch ALDW and NGL, both of which have done extremely well for me.

I'm assuming you've looked into AMID carefully. If not, then I'll urge you to do so as soon as possible.

Good luck!

Being purchased by another company (AMID) is generally a good thing. I continued to hold.

Oil should do well this year.

Let's try to keep an open mind as we enter the new year of trading. It's easier to sit on old perceptions. But that doesn't serve as times change. We must change with them.

So I will reinvestigate this company in the hopes of coming up with fresh evidence in support of new opportunity.

See you soon!

I agree with you.
I would also add that people and funds a balancing their ports.
for the tax time next year. Will be watching the last part of Dec. And the first 2 weeks of Jan. to see how it plays out.

GLTU

This pick has me uncomfortable. Studying the more recent filings, it's impossible for me to ignore the 19 cent/unit loss. Continuing the paying of distributions despite bottom line cashflow insufficiencies would not be my way to managing things if I were in a controlling position. I don't subscribe to mortgaging the future.

I'm not seeing much that urges me to responsibly reopen my former positions. But I wonder how others view their investments in JPEP?

There's no way to predict how this will---or will not---impact on JP Energy Partners.

This deal has been in the works for some time now so the marriage shouldn't be a surprise. Still, I'm glad you posted the info as it may lead us to making decisions with greater understanding.

American Midstream to Buy JP Energy in All-Stock Deal

http://www.bloomberg.com/news/articles/2016-10-24/american-midstream-partners-to-buy-jp-energy-in-2-billion-deal?cmpid=yhoo.headline&yptr=yahoo

Yes, I'm satisfied with the round trip trade although I like the action we're seeing now. However, the risk factor is still not to my liking. And a number of my other longer term picks continues to prosper to my liking. NGL and ALDW are doing especially well.

I hope you continue to prosper without feeling the bite of a distribution cut.

well you should have held some..now they will pay you over $8 a share..you still did good.

Not long ago I sold my position in JPEP. A discussion with a good friend this morning led to my exploring my trading history involving this stock and I found that I sold off in lots of about a thousand units each---at prices ranging from $7.41 to $7.61. So I had a gain of a few hundred $ but the real gain hasn't been about money at all. Rather, it's been about shouldering far less risk and this translates into concern.

I continue to expect we'll soon be seeing a distribution cut. The cut itself shouldn't be the final determinant, though. It's the drop in valuation sure to follow---and any gains accumulated thus far are likely to be shot down in one fell swoop or one not so swell poop. Take your pick. A cut will drop the unit price to the $6 range and if severe enough, even below that.

Look into the filings and you'll quickly find there's simply not enough free cash flow to support even a zero-sum distribution. This means that the company stands to lose money even if totally eliminating the distribution. Income must be used to keep the lights on, salaries paid and they've got to continue on the acquisition trail or be swallowed up themselves.

Not looking good now and in the near-to-mid term future.

Believe it or not, I almost feel guilty accepting distributions from those MLPs in which I'm a unit holder. Not to deprecate the value of my vested dollars but the simple truth/reality is that opportunities to create profits are more likely in my ballpark than that occupied by JPEP.

I am nimble as a lone investor and am free to add, diminish or extinguish a position in a heartbeat. I continue to expect we will see a sizable distribution cut. There don't appear to be meaningful catalysts for firmer company footing while there are ample cases for lowering positive sights.

I hope I'm waaaay wrong as I've enjoyed being an investor here at JPEP.

I was not sure on the MLP scenario but other than that it would seem they have a loss for the QTR and then take another loss on the dividend ??? I thought the profits were passed on as the dividend ???

There's a hangnail in this---retained earnings.

MLPs are restricted in that regard and thus lose a great deal of freedom accorded other tax structures outside of the MLP format.

Otherwise, I appreciate your input. And you may have something to say on this so I'm hardly counting you out. lol

When it comes to declaring and paying dividends, current earnings per share has nothing directly to do with whether a company is able to pay a dividend. Keep in mind that a company with a lower earnings per share (EPS) than its dividend in a current year may be coming off of a string of more profitable (high EPS) years, from which it has set aside cash to pay future dividends.

The only real numbers that matter in paying dividends are "retained earnings" and available cash. From a management point of view, retaining some of the shareholders' earnings quarterly or yearly makes a lot of sense. Having a large retained earnings balance allows a company to pay consistent dividends with no negative surprises. In addition, the company is able to keep cash on hand to reinvest in its future expansion.

On a related note, many investors do not realize that a company's earnings per share is calculated after the higher yielding preferred stock dividends have been paid. In other words, a large portion of a company's dividend costs already may be reflected in the EPS number that most investors look at.

JPEP took $11.629 for depreciation. This is not a payment. It's a deduction. That is cash flow.

It's called cash flow. read 10Q.EBITDA was $14.9 mill.

That doesn't explain things away, it merely acknowledges there's a fountain of money. How is gross revenue to be recognized WITHOUT consideration for financial obligations? And how can this be justified while remaining within the parameters of legal accounting practices?

EBITDA.

Here's a question for you folks:

When a publicly traded company such as JPEP suffers a LOSS of 6 cents per unit, how does it manage to pay a distribution well more than five times the amount of that recorded (officially on the books) loss?

Looking forward to your input.

A follow-on question:

Why does it do this?

lol I have to agree with that jugs-nothing is a sure bet, we do our DD, make a decision based on past experience with both oneself and the market and face the music.You can't win them all but I like to win a few and a few of the big gains makes it all worth while once the dust clears.


I Was at a family reunion the last 4 days and I was delegated to making sure all the kids caught fish. I did my job with a 4-11 yr old crowd and they are tougher than one would think when it comes to demanding results.They all caught plenty over the gathering and were just so happy to be able to land some fish. For some it was their first fish and it was a lot of fun for this old softy too.

I continue to hold.

JPEP appears to be doing well, at least on the surface. And I'll admit I'm tempted to plunge right back in. I hate being left out of the party!

Still, despite the very positive piece in this morning's Seeking Alpha edition, there wasn't a word mentioned regarding the company's expanding margins or anything referencing organic growth.

Thus I'm staying the course on this one. I've got to see reasons to buy units. I could believe this company may not be on a good trajectory right now and that would concern me as a unit holder.

Still, I wish you all the best in this pick. I did great in it last January/February, so-so more recently. But it's not always about my profiting, it's really about how the company does. My first priority is that of identifying companies on the move. Energy is under duress, no question about it, and only the most nimble of energy companies will survive intact with enviable followings of loyal unit holders to boot.

Good fortune!

It would be remiss of me to fail mentioning today's news of a severe distribution cut in SDLP. Many investors assume that everything will be just fine once we're merely days away from a pick's going ex-distribution. The SDLP news comes to us just a week prior to the company's going ex-D. Thus, the fact that we're mere days from a juicy distribution is not any sort of guarantee whatsoever and it's important that we investors remember this fact well. When it comes to making a profit in the stock market, it is extremely unwise to count on anything but our own personal shortcomings.

Now, then--- last month I sold my JPEP position. I'd built up a gain but sensed the company would be forced to cut back on its distribution program. That, of itself, was not a primary reason I sold. Rather, it was about the drop in valuation I awaited, should there be a severe cut in the distribution forthcoming. Sector performance indicated there was/is no way the company can sustain its distribution policy without implementing a cutback. To date, nothing has occurred publicly that would corroborate my earlier position.

I may have been wrong on my call. Still, we don't know yet. But we're witnessing even some of the largest sector operators in the business resorting to mothballing some of their leading projects despite having to cough up money to compensate suppliers, eating crow, as it were, due to contango.

So I'm ok with being out of JPEP for now. I will not be out forever and will report back here as I make changes myself or see cause for glee or concern.

Need I say this, however?--- My gains were marginal. If yours are substantial, please consider taking those gains off the table before marrying what may well turn into a mistake worthy of divorce. SDLP is now down 27%. That's a hellova hit, imo.

Yes, it's good. I don't believe it's sustainable. I sold my position partly for that reason, also because I'd built a nice gain and had better prospects in mind for further investment.

Some JPEP seed capital and profits went into NGL which just announced the Q2 distribution in the amount of 39¢.

may I ask what is the issue with this stock?

the div yield seems quite good

Me very glad you happy.

No complaining here - I did not get the entry you and some of the others did here because I was wrapped up in other stocks - again not complaining it has been a good year for me so far.

Me Happy

I guess I look at it differently as I sold off with a good enough profit in hand and applied the money on other picks that have done extremely well for me.

There's two sides to this---the money we repatriate and then it's the utilization of seed capital plus profits gleaned. I'm remembering ALDW at $5.70 and CVRR at $6.08 and MDR at $2.80 to name a few. It's so easy to forget buy-in price points when surveying some of the woulda's and shoulda's. That's why I look back to see the real skinny. I beat myself up less, this way.

Once again had I waited I could have done better --it could have gone the other way also - such is the game we play here. It's part of the process.

Is it my imagination...This site seems to get slower and slower...Oh well I'm out of JPEP with a 4.8133 profit on appreciation per share...700 shares...Thanks for the tip!!!! GLTA!!!

You've just nailed it insofar as my own personal sentiment goes. We ARE all in this together. Granted, not everyone will respond to the same things on the pages of our lives' books, but we can try to do our best and hope others benefit along with us.

You're a happy guy. It shows all over the place. Pete, too. I get so much pleasure through our interactions here. Such a fine way to bloodlessly shoot the bull.

Now, if only we could figure out how to butcher and eat it....

No, I wasn't talking about BS. Different kind o' bull.

I agree on several points, one being appreciation trumps dividends a lot of the time but the key is if the stock does not appreciate according to my time frame (lol-right ) the yield is payment for waiting.I am very accustomed to stocks going down when I buy and going up when I sell -it happens. Yes, when I sell out a position and it blazes up a couple more tiers I think dang it - on the other hand when I make profit on my purchase, that was the objective all along then all is justified.Said it before and going to say it one more time:"we can always buy again", always.I am very happy with my performance this year and I have been flat covered up at work so I will pat myself on the back.Glad to see others making some money also because believe it or not we are all in this together- this big ol adventure we call life.Very grateful right here.

There's a fascinating thing here, I've got to address it.

When we sell out of a position, most of us can't stand the thought of freshly repatriated dollars just sitting around collecting dust instead of previously hoped-for profits. I like to get that seed capital working FOR me instead of the brokerage.

Usually holding around fifteen positions (different picks), my first move is to look squarely at each, considering same for further investment. Yesterday I pulled about a third of the JPEP cash out, putting it into my checking account for eventual brokerage use. Then, as I considered my other positions, I started to examine more aggressive changes in them. ALDW stood out like a sore thumb, no question about it. So I started to stalk it. By day's end I'd added a thousand units of ALDW at prices low enough to have me feeling really good while also dropping my cost basis.

Lately I've been finding situations like this and I'm continually surprised, in a nice way of course. Last week I had cash available and as I reduced a position in one pick, I noticed SDLP had dropped precipitously without visible explanation. So I added. This seems to be happening frequently and it's having a great impact on position size, cost basis or both, once in awhile.

On the surface, then, sure.....I let go of JPEP. I came out with a modest profit but most importantly---the whole transaction process occurred within less than a half year. That's nice as it means my seed capital was preserved and profits were earned during a brief period. This is one of the primary drivers for me in the case of ALDW. If I'm a fireman about to enter a burning building, I want to know up front where the exits are so I can maximize my options. I do not intend on holding ALDW into next year.

I don't apologize for a stock's poor performance by acknowledging its distribution history. For me, it's what my money (invested) is gaining---or losing. If seed capital is at risk and I suffer a loss, then dividends might require years to undo my losses. I may not live that long. Again, I've got to see where the exits are. And this is why I always have an exit strategy in place when launching a position.

Yes a minor loss nothing to scoff at- my main concern with all the healthcare REITS is just what I found while looking at HCP fraud with government funds (medicare) there are billions in fraud each year and our government does not care at all. This is a concern, of course they are not all crooks but my luck I could find one that is.Just kicking the can on this as you know I like energy stocks and getting positioned now for oil to go back up next year could be stellar in profits.I am looking at a couple of beat up oil stocks but they are barely hanging on with a lot of debt and could easily go into BK - nothing ventured nothing gained I know but one has to be careful.



http://ih.advfn.com/p.php?pid=nmona&article=71772375

A fellow researcher whom I won't identify brought the insufficiency of the distribution coverage to my attention. His concern had to do with distribution reliability and had nothing to do with valuation although obviously one will usually become a victim of the other.

Ordinarily I won't close out a position upon piecing pertinent things together and not liking the result. In this case, however, I'd done fairly well at the beginning of the year when I closed my (then) JPEP position. This time I did OK---came out with a $1,500 gain or slightly better. Still, it's not at par with results the rest of my holdings reflect. So I'm not especially pleased with my JPEP results and believe it's time for me to keep a watchful eye on things but move the seed capital and profits elsewhere.

What is your source of information?

I'm so glad I got to you in time. Although I haven't crunched your numbers I'm thinking you came out with a minor loss as your sell point numbers are great. I'm not having luck after unloading some as disclosed earlier on the board. Not sure what I'll do as Wednesday might show an oil draw-down which could boost JPEP higher despite the grounds for same being part of an ignorant disconnection among unit holders out there.

I hate losing money! Fortunately it seldom happens. But I hate it, nevertheless. So I'm hanging in there.

As for your healthcare REIT move? I'm too old to be thinking about market trends going beyond the next two or three years. I've got to keep things real with my age in mind (76). When age is a factor, a mark-to-market approach seems to be the most effective basis if balancing things for future results. Fortunately I'm in perfect health and no prescribed meds at all. Still, nothing is forever.

I am in NRZ (a REIT) paying nearly 14% which is getting rave reviews for stability, growth and anticipated distribution increases. I have a smallish position in an IRA of the wife's and nearly opened a position in my general account today---using limited JPEP seed capital reclaimed. I'm leaning towards this as it's very stable, I've been in it since it IPO'd and it's been a good one with extremely little risk. I got into it when it was spun off by Newcastle, by the way. I've found health REITS to be unstable and subject to swings wider than I like.

And not a moment too soon down she is going -

I am out and it was a fight to get out close to even - I lost some here but better too get out before the herd exits .Could have been worse had I waited I did sell 500 for 7.61 100 7.64 100 7.51 300 7.61 600 at 7.44

My first buy was at 7.77 1k total position was 2500

I am looking at HCN pretty strongly as a long position, its had some serious long term growth and its sector will not slow with all the baby boomers looking to retire soon - some already have

Healthcare real estate's long-term potential

There are three main reasons I like healthcare real estate and the REITs that invest in it over the long run.

First, there will be an increase in demand over the coming decades, which implies that there will be tons of opportunity for development. The senior citizen population is projected to nearly double by 2050, which obviously means a greater need for senior housing properties, but will also result in an across-the-board need for all kinds of healthcare facilities -- hospitals, physicians' offices, long-term care, etc.

Source: HCP company presentation.

Second, healthcare costs have been rising at a faster rate than inflation, and there's no reason to believe this will change anytime soon. Since the value of commercial real estate is mainly derived from its ability to generate revenue, this implies that healthcare property values could grow more rapidly than other types.

Overall inflation rate vs. healthcare inflation rate in the U.S. Data by Ycharts.

Finally, the healthcare real estate industry is extremely fragmented. It is currently a $1 trillion industry, and no REIT has a market share of more than 3%. In addition to the growth opportunities I discussed, this means there will be lots of opportunities for consolidation in the years ahead.
Four great ways to play it

There are many REITs that invest in healthcare properties, but here are four of my favorite ways to invest in this high-potential market:

1. Welltower : A massive healthcare REIT with about 1,490 properties, Welltower is mainly focused on senior housing properties, with significant investments in post-acute and long-term care as well. Despite its size, Welltower is still growing at a rapid pace, with an average of $1.1 billion of investments per quarter over the past four years, including a particularly aggressive expansion into the U.K. and Canada.

Welltower was founded in 1970, and has one of the longest and most impressive growth records of any stock in any industry. Over its 45-year history, Welltower has produced an average 15.6% annualized total return and has increased its dividend by an average of 5.7% per year. To put this kind of sustained long-term performance into perspective, consider that a $10,000 investment in Welltower in 1970 would have ballooned to more than $6.8 million today. For this reason, Welltower is an excellent example of the long-term potential of a well-managed healthcare REIT.

Source: Welltower company presentation.

http://www.dividend.com/dividend-stocks/financial/reit-healthcare-facilities/hcn-welltower-inc/


not a huge yield but some serious growth and appreciation

I've got JPEP in three accounts with about a third of the total units held up for grabs at $7.56. Not a single bite. This is one of the things I most dislike about thinly traded stocks.

For several weeks I've been eyeing additional purchases but held back due to my realizing that taking profits off the table might not be so simple....even though I hold just 3,000 or so units.

I like to hold 15-20 picks in the stable, each, with sizable share counts. A few years back I held as many as 83 picks, many with multiple positions taken in various accounts. It was too much work but before I saw the light about that, I found that my profits rose as I took hi-profit momentum plays off the table. That told me that so long as I could find highly prospective plays, I should put more faith in my picking ability and leave less for the Fates to eat.

This is at the very backbone of my focusing on about eight primary picks. Needless to say, this revised strategy has worked beautifully over and over again.

JPEP doesn't fit into this picture, does it? No, of course not. It's far more speculative against a backdrop of NGL, CEQP, ALDW and some notable others, of course. JPEP most definitely gives me something part of my brain craves---and that's "the long shot."

I love the highest risk opportunities. Pennies are out for the most part as I've been duped too many times for comfort. But so long as a year appears to be on a greatly profitable curve, I figure, "Why not take a gamble here and there if I can afford it? It's fun and you never know when one of life's little surprises might just come my way, right?"

So I'm prone to being my own sucker, every so often. But it's part of the game and this is, after all is said and done---a game---a game of wits and courage and a healthy dose of foolishness, sometimes.

JPEP lacks the wherewithal to enable free exchanges of trading. I never mind giving a nickel to the next trader in line. In fact, I feel good when I drop my selling price a few cents, figuring the buyer is going to get a good deal. But I've got to feel good about my gains or the process is flawed. At the same time, if there's insufficient trading volume to make this a possibility, then I need to get out. I can't breathe if there's not enough air.

I'm hoping this bit of reasoning will be useful to some others. And having said that, I just looked at my sell orders and find one filled---356 units at $7.56. Two orders remain and I'll post results if they execute.

For what it's worth---I posted my intentions here prior to following through by setting up the orders to sell. I use the "all or none" feature so that moves are not visible to the public. For those not knowing about this---AON directives will not show up on Level II. Because I tend to hold sizable positions, I prefer to not make certain trade information readily visible as they can alter the general picture of the stock's performance. It can inhibit my sales scheme and otherwise end up manipulative---if I choose. I do not choose to manipulate stock price, don't need to.

Just checked and a second order filled---thus far about 600 units have sold at $7.56-$7.57. Remaining is an order to sell 500 units at $7.60. I'll drop my price a dime or less if the units don't sell. This would preserve my gains while taking advantage of today's market with a happy face due to Brexit. Such foolishness!

I hate this but you'd hate me more if I didn't speak up. So, here it is:

Word just got to me that DCF here in JPEP-Land has fallen to 79% over the past year. When "distributable cash flow" can't match stride with distributions, there's only one way to go and that's a significant cut in our payouts. By itself, that's not the ultimate deterrent. However, we don't have to stick our heads in the guillotine. And worse is how JPEP units might react on news of an impending distribution cut. I'd hate to lose my gains.

Distribution cuts are hardly new to us but this is Brexit Week and it is reasonable to expect things to respond with unreasonable severity. On top of that, I expect oil to take a hit this week--- a breather at least until the Eurozone straightens things out.

There are other plays out there for us---Pete and I are looking into one as we speak. And our family of opportunities is large enough to present excellent alternatives.

So, then---I will sell my ENTIRE position as soon as I can get a feel for the opening bell.

Think this over, please.

I'm uneasy about letting go as I remember well the positive reactions to some of our picks when they announced cuts. Still, I'm confident in our other picks---enough to put more cash into a couple, believing gains there will be offsetting JPEP disappointment---even if JPEP should rise on a revised payout schedule appearing to be newly sustainable.

As I think this through more completely, I may sell off half and take my chances.

Your input is most eagerly awaited.

I loaded another 1k units in this 7.50 area -right at my first buys here.

I'd placed an order this morning but yanked it to focus on ALDW. I've got 3,010 JPEP and believe we are going past $12 this year.

Jumped on this when Jugs first mentioned it...Glad I did...700 units @ 2.4187 and lovin' it!!!!GLTA!!!

Sitting on 3,010 units, having begun (this time around)this position the very end of January of this year. Am up about 14% but expecting we're going to see more than $10 before Winter. I'll be a buyer on any significant pull-back. This is still flying beneath most people's radar.

I am green here on two positions 7.77 and 7.57 all it takes is some patience.

JPEP is up 18.02% for me, probably similar to your portfolios. I'm about as confident as confident can go in my expectation that JPEP is going to fly off the shelves. It may take a couple of months but I'd imagine we're all ready, right?

On any pullback I'll be a buyer for sure. At present I have 3,010 units with a cost basis of $7.27. Something in the range of $8.35-$8.40 looks about right. I see no reason to extend beyond that zone inasmuch as CEQP, NGL, SDLP & some others are presenting incredible opportunities as well. I'm not looking for "decent" profit potentials at this point---I'm sensing enormous gains just ahead and have no need to grasp at any moderately prospective pick in an act of desperation.

This is most definitely shaping up as a highly desirable moment in a trader's time. I hope others here are equally pleased.

Sorry to be so long in acknowledging your beautiful statement. I composed a return piece but now see it flew out into cyberspace.

Tonight we're hosting a small dinner party so I'll be brief by saying it's so good to share this investing space with others and you in particular at this moment. Nobody's got ulterior motives here, we all just want to prosper while trying to be of help to others who may need a bit of help along the way.

I'm so thankful for this opportunity we have to make new friends, serve one another and bring things to light that not everyone will have known.

This is a blessing, perhaps even more fruitful than the dollar-denominated gains we seek to experience.

Have yourself a great weekend, please!