Use access key #2 to skip to page content.

PVR Buyout

Recs

4

October 10, 2013 – Comments (4) | RELATED TICKERS: PVR , WPZ , BBEP

Since end 2008 I have been suggesting many MLPs, BDCs and REITs for people to consider.  One was PVR.  Earlier this year Deej wrote a blog wherein I again suggested PVR.

 http://caps.fool.com/Blogs/two-mlps-with-great-stories/800052

At the time it was trading low 20s.  It did run up to 29 then fell to slightly under 23 after a secondary announcement.  Today it is trading over 26 based on a buyout offer from Regency Energy Partners.  The offer is 1.02 shares of RGP plus about 50 cents cash per 1 share of PVR. They claim it to be $28.68  per share but RGP is currently trading at 26.

I really don't know much about RGP so I can't really comment if the swap is good or not.  I actually don't like it since I think PVR had a bright future.  Also it will be a distribution cut 2.20 from PVR to 1.86 RGP.

I will probably take the money and run and re-invest it between 2 other MLPs I own, WPZ and BBEP.

So for those who bought from my suggestion cheers to a quick profit.

4 Comments – Post Your Own

#1) On October 10, 2013 at 12:01 PM, awallejr (77.23) wrote:

As an additional thought, the May 2014 22.50 puts are selling bid/ask .80/1.50.  Selling even at the ask seems like easy money absent any black swan event.

Report this comment
#2) On October 10, 2013 at 12:58 PM, portefeuille (99.66) wrote:

the bid ;)

Report this comment
#3) On October 10, 2013 at 7:28 PM, awallejr (77.23) wrote:

oops.

Report this comment
#4) On February 18, 2014 at 8:08 PM, awallejr (77.23) wrote:

Those 22.50s now at .10/.30.  I also decided to keep my shares and stick with the merger.  I think together PVR and RGP make a solid company.

Report this comment

Featured Broker Partners


Advertisement