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Non-Tech : UAN - The variable distribution MLP that could go a long way -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (166)8/26/2021 12:07:44 PM
From: Lesser_Ape  Read Replies (1) | Respond to of 652
I think it's a nice example of a failure in efficient market theory.

IMO, the lack of attention is because:
  • it's an MLP, which has complexities that regular public companies don't
  • it's small, so nobody is paying much attention
  • it doesn't screen well--it'll fail screens that filter for high dividend yield
  • it's in a cyclical market and people are worried the commodity will collapse

To: Elroy who wrote (166)8/26/2021 12:19:35 PM
From: Paul Senior  Respond to of 652
Some possible reasons:

1. If somebody were interested in dividends -- high dividend yielders -- and they were scanning for that, it's not likely the data providers would show anything now other than $1.72 annualized, imo.

2. When the second "dividend" shows up, that will bring the yield very good for dividend seekers. Except that the people seeing that that is new, and so they would have to consider whether it's sustainable over many quarters.

3. People look and they will see: It's not a "dividend" they're getting, but a distribution. Along with a K-1. They have to ask themselves, do they really want to be involved in a limited partnership (MLP) and the tax implications that entails?