Thursday, September 8, 2011

Recent Purchase

I got the dip I had been waiting for today, and I picked up 58 shares of CLMT.  The stock (MLP) took a pretty hefty haircut today, closing at 18.00 per share.  This is due to the company selling 11 million units (shares) to finance some debt that was generated in the purchase of an oil refinery.  I'm confident that this is a good entry point for this stock.  At its current price its distribution (dividend) is yielding 11%.  My purchase means an additional $28.71 per quarter at the current distribution.  I'm not concerned with the possibility of a distribution cut at this point, as they recently raised it from 0.475 to 0.495 per share per quarter.  Anyway, I'm happy with this one; I've had my eye on CLMT for a while.  Time will tell how good of an investment it is, what do you think?
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2 comments:

  1. InqFinanceSeptember 16, 2011 at 8:10 PM

    landed new to your site. good post. i have not looked at this stock yet.

    ReplyDelete
  2. Big JSeptember 17, 2011 at 6:06 AM

    Thanks for stopping by Inq. Time will tell on CLMT, I'm not too concerned as long as they keep the distribution at that level.

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