ARLP - anyone adding?

[DividendDragon]

Taking a look at ARLP at the moment and the yield is just crazy.
I'd definetly be adding but as I'm more focused long term (30 years) I'm weary of adding a coal stock seeing as I'm already overweight in oil.


Anyone adding at these levels?

[Caversham]

(08-09-2015, 02:04 PM)DividendDragon Wrote: Taking a look at ARCP at the moment and the yield is just crazy.
I'd definetly be adding but as I'm more focused long term (30 years) I'm weary of adding a coal stock seeing as I'm already overweight in oil.

Anyone adding at these levels?

ARCP was a REIT that falsified their financial statements. Since you talked about coal, I'm guessing you meant ARLP. Unfortunately, I know very little about the company.

[DividendDragon]

(08-09-2015, 03:27 PM)Caversham Wrote:

(08-09-2015, 02:04 PM)DividendDragon Wrote: Taking a look at ARCP at the moment and the yield is just crazy.
I'd definetly be adding but as I'm more focused long term (30 years) I'm weary of adding a coal stock seeing as I'm already overweight in oil.

Anyone adding at these levels?

ARCP was a REIT that falsified their financial statements. Since you talked about coal, I'm guessing you meant ARLP. Unfortunately, I know very little about the company.

Yes I did, no idea why I typed ARCP.
Corrected! Thanks

[rapidacid]

I doubled down on ARLP on the 15th of July @ $24.99 ... I like the company, I like what I read in the reports and what I hear on the earnings calls

They raise their dividend about 2% every quarter ... currently receiving $2K / yr in dividends from ARLP

[DividendDragon]

(08-09-2015, 06:33 PM)rapidacid Wrote: I doubled down on ARLP on the 15th of July @ $24.99 ... I like the company, I like what I read in the reports and what I hear on the earnings calls

They raise their dividend about 2% every quarter ... currently receiving $2K / yr in dividends from ARLP

Hmmm

I'm really torn between starting a position or not. I love it for income but if my horizon is 30years....

What do you think?

[earthtodan]

If your time horizon is 30 years I think there's an easy rule: Avoid coal, especially thermal.

[rapidacid]

(08-10-2015, 09:49 AM)earthtodan Wrote: If your time horizon is 30 years I think there's an easy rule: Avoid coal, especially thermal.

The US Energy Information Administration has coal generating 39% of the electricity in 2013. In 2040 the EIA projects 34% from coal.



And here's for all energy consumption with coal actually projected to grow in absolute quadrillion BTU, but fall as an overall percentage share



2040 is a long time away so anything can happen in the meantime.

I think coal will be perfectly fine on a 30 year horizon.

ARLP is a well run company with a great balance sheet. They're profitable where as many competitors in the US are losing boatloads of cash right now. If those companies go out of business there's a lot less supply on the market which is great for ARLP.

They're trading at a ridiculous discount right now.

3.3 EV / EBIDTA
11.3% dividend yield
24.3% free cash flow yield
5.0 P/E
54.6% payout ratio
14.7% EPS 5 year average
40% ROIC

http://financials.morningstar.com/cash-f...tml?t=ARLP

[hendi_alex]

The assault on coal has come nowhere close to running its course. Obama's initiative to decrease carbon dioxide emissions will keep the pressure on utilities as they generate by far the greatest amounts of carbon dioxide. DUK continues to shut down coal plants, switching to NG. NRG has already switched most of its production away from coal. SO will have to follow soon as will any utilities that wish to remain competitive. IMO coal for our generation is dead as an investment. I would much rather place my chips on a rebound in crude/NG or even consider investing in the green technology energy sub-sector.