$4.41
-0.01 (-0.23%)
Star Gas Partners, L.P. (NYSE:SGU)
CAPS Rating:
A diversified home energy distributor and services provider, specializing in heating oil and propane.
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Look for the long in the making rise from the ashes of this company like the proverbial Phoenix as this is the tale of an operation built from the ground up and run as the standard of excellence by it's founder who then sold his Company for big bucks and retired not realizing that he had sold to a group of rotters, who ran the partnership like rum pot's and finally right off a cliff as stewbums for managers tend to do with good businesses. After selling high his ownership in this Partnership he found himself in a position to buy it back at all time lows which he did. He has since set about returning the Partnership to it's former glory and is clearly well on the way to having completed the successful turn around and operational excellance driven focus that will make this one of the better investments you could make at the current prices which won't be around much longer and are unlikely to be seen again anytime soon. The fundamentals are all there and the Cinderella story that you get free with the package makes most people to poor not to be able to afford to pass up a cash generating ATM machine investment like this one is.
Perhaps this will sweeten the pot a bit for those looking to invest in this company or partnership as it were, the current quarterly dividend was just raised to .0725 or .30 cents per year along with the redemption of 50 million in senior notes. The foundation having been laid and the balance sheet beefed up to steroidal levels in comparison to what the rotters who wrecked this investment had done to it and frankly any financially sound enterprise at this point now begins the good news for the partners of this enterprise. Depending on how you view the increase in the dividend payout to approximately .11 cents per quarter or .44 cents per annum over the coming months and quarters ahead at a relatively rapid pace that should bring this to completion over 12-18 months or so. What the effects of an increase in dividends of nearly 50% over this period will have on the unit price is also a matter of ones point of view, but I say that this beefy boost in dividends will bring about a beefy boost in capital appreciation right along with it. A year or so from now you can look back on this and smile at your wise decision to buy in right now and so having enjoyed a splendid ROI over these past Quarters that may not be offering much in the way of ROI as it appears the markets will be going in the near to mid term markets performance ahead. You might even take the time to drop me a thank you note for generously sharing this information with you so you had the opportunity to rack up some fat profits along with me out of the kindness of my heart. On the other hand you may look back on this in a year gnashing your teeth and rending your garments having missed out on this big pay day investment opportunity instead investing in securities that at best will offer meager returns and at worst turn out to be dog turds for the vast majority of investments you are likely to make based on the financial shape of the economy. Should you be one of those who think it wise not to head my sage investment advice on this particular enterprise, all I can tell you is abandon all hope and despair ye who passes this great investment by in favor of what will be unlikely to come close to matching the performance of SGU over the same period. Don't say you have not been told of the .11 cents a quarter and .44 cents a year dividend well in advance of it coming to fruition and along with capital appreciation providing uncommon profits for your enjoyment when it happens and you pooped off your capital elsewhere and feel really stupid for not taking this advice while you had the chance as of 02/01/2010 to get a lick of the brass ring on this deal and having chosen to lick something much less pleasant instead. At that time I suggest reflecting on the fact that you were really stupid and deserved to lick whatever foulness your taste buds encountered for blowing such a big chance as you will have done by failing to buy up a piece of this excellent investment when you had the chance. I'll be certain to provide myself the accolades and praiseful commentary that I will richly deserve once my predictions have come true while I am not beneath also rubbing salt into the wounds of those who failed to capitalize on the wizened advice that will appear Solomonesque in due course. Cheers.