Inter Pipeline Fund (IPL.UN)
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It's down 5% today. It makes me wonder when stocks have these wild gyrations over a short period if someone is tampering with the stock Bud Fox/Lawrence Wildman style. Maybe I've watched too many movies.
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It's also possible that a large institutional buyer paid a premium to buy that many shares. On google finance I can see buys of:
42,600 shares at 16.99
44,800 shares at 17.00
76,100 shares at 17.03
253,800 shares at 17.08
That's 417,300 shares bought in the last 6 minutes of the trading day. IPL averages 458,993 shares traded per day. Probably was just an institutional buyers looking to buy ~400,000 shares and paid a premium to do so.
There indeed was a big institutional buyer at the end of the day yesterday.
Id like to know who it was.....in any case they obviously like IPL and wanted to buy/own it.
So if you own IPL be happy, even though the price did drop back this morning.
If you don't own IPL...might be a good time to buy along with this big buyer....and you will get it at a lower price than they did!
good luck.
Id like to know who it was.....in any case they obviously like IPL and wanted to buy/own it.
So if you own IPL be happy, even though the price did drop back this morning.
If you don't own IPL...might be a good time to buy along with this big buyer....and you will get it at a lower price than they did!
good luck.
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I was also curious to see how I made hundreds of dollars in a few minutes. The only thing I could find yesterday was a new COO was announced. The same thing happened with Westshore Terminals so I was super excited yesterday, but they're both down today. Probably a similar institutional buyer with the latter as well. I probably should have pie in the sky limit sell orders on my stocks to take advantage of stuff like this.
IPL is something you prob wanted to hold for long term...with the nice yield.
Dont let the market noise make you crazy.
If you are going to own stocks, you MUST be able to stomach the volatility.
Making ( or losing ), a few hundred dollars ( or much more) , in a few minutes is something that happens to everybody, especially as your portfolio grows.
IPL is a solid stock to own.....dont sweat it.
good luck
Dont let the market noise make you crazy.
If you are going to own stocks, you MUST be able to stomach the volatility.
Making ( or losing ), a few hundred dollars ( or much more) , in a few minutes is something that happens to everybody, especially as your portfolio grows.
IPL is a solid stock to own.....dont sweat it.
good luck
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Down today.
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What this buy tells me.
That the sentiment for IPL is bullish. The institution basically did the buy test for me. It told me how liquid this stock is and at which premium would I find enough seller to sell. It also told me that there isn't a hidden large player selling at any opportunity... There is, however, somebody at $17 ready to sell.
The retail investors though wouldn't want to buy at more than $16 so it will have to be slowly ground up to $17.
The large institution buy did not break that particular sell order. Tomorrow, I'll scrounge together some cash and buy more IPL.
That the sentiment for IPL is bullish. The institution basically did the buy test for me. It told me how liquid this stock is and at which premium would I find enough seller to sell. It also told me that there isn't a hidden large player selling at any opportunity... There is, however, somebody at $17 ready to sell.
The retail investors though wouldn't want to buy at more than $16 so it will have to be slowly ground up to $17.
The large institution buy did not break that particular sell order. Tomorrow, I'll scrounge together some cash and buy more IPL.
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Yeah, I think it's good news all around, I've been on board and excited since they announced a dividend increase three days after I bought it back in October. The price coming down from that lifetime high yesterday doesn't bother me because I can get more from the DRIP.
I own some of this outside my rrsp/tfsa unfortunately so of course most of the distributions are considered income at the highest rates. My question is what happens if I decide to DRIP this? Do the distributions then become non taxable and taxed at a later date (via owning more shares down the road)? Or would they show up on a T5013 same as they do now?
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If it's held in a non-reg account, and the distributions are not return of capital, then they are taxable for that tax year regardless of if the distribution is reinvested.
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BTE and IPL wre bought for their yields, but their performance is getting a little scary.
BTE was a 7% Convertible, bought at $100, went to $355, converted to units, still think it will be a takeover.
BTE was a 7% Convertible, bought at $100, went to $355, converted to units, still think it will be a takeover.
Unless Im wrong, distributions in 2011 and thereafter will be mostly dividends.
IPL decided not to convert to a corporation, and stay as a "trust"
I believe they did this because they could not justify the cost that would be incurred to convert to a corp, and saw no reason to do it.
However, like I said, their distributions will now be mostly dividends...( not regular high tax income).
If anyone knows anything wrong about this info , please post
It says "a portion of distributions is expected to be treated as a return of capital" . This is one reason I don't buy the stock outside a registered account - don't like to track the ROC
http://www.thepressreleasewire.com/....jsp?actionFor=1407931&releaseSeq=0&year=2011
http://www.thepressreleasewire.com/....jsp?actionFor=1407931&releaseSeq=0&year=2011
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On google finance IPL's earnings are $0.91. Their monthly dividend payment of $0.08/share equals $0.96/year. Quick math would indicate IPL is paying $0.05/share more in dividends than they earn annually.
You can find IPL's public documents here:
http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00009217
Their year ended 12/31/2010 statements show net income of $234,769k and dividends declared of $232,600k. They're basically paying all earnings as dividends. This is concerning to me given IPL pays a floating rate of interest on a large portion of their debt (BA + ~50 basis points) per note 9 of the FS. If interest rates rise (as I think they will later this year), that could reduce IPL's income and cashflows. I also question how a company will finance future growth when all earnings are paid out.
I question IPL's amortization expense. PPE increased from $3.765 million to $4.002 million, however amortization decreased from 102,229k to 87,535k. If you used the same amortization % (based on BV) as the prior year the EPS drops significantly.
I know many posters on here like IPL for their cashflow. If you look at the financing section of their cashflow, cash distributions of (194,487) are offset by long term debt acquired of 180,689. I don't like dividends to be financed by debt. How will that debt be paid down?
IPL has a defined benefit pension plan that required a $4 million cash injection last year, DB pension plans are not something I like my companies to own.
IPL also purchased 43% less PPE than last year.
To summarize, IPL is acquiring debt, purchasing less PPE and are vulnerable to fluctuations in interest rates. I'm not sure how they can grow based on those points. I do like IPL and the industry in general. I am not sure if the dividend is sustainable, if the dividend were to drop I think the share price would drop as well. For that reason, I'm staying away.
Hi Ethan,
Thanks for your detailed analysis of the financial statement.
I had crossed IPL off my list for the same reasons you listed but I am fairly new to this and am just trying my best to learn as I go. Getting confirmation definitely helps me feel more confident that I am on the right track.
Just curious... did you end up "rebalancing" your portfolio after all?
Thanks for your detailed analysis of the financial statement.
I had crossed IPL off my list for the same reasons you listed but I am fairly new to this and am just trying my best to learn as I go. Getting confirmation definitely helps me feel more confident that I am on the right track.
Just curious... did you end up "rebalancing" your portfolio after all?
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