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01-02-2016, 03:52 PM #1
Potential Great Dividend Play
We all know that the energy sector is taking a hit from lower oil prices, I'm looking to profit off of this through dividends. This may sound a bit crazy and that's why I'm posting, I would like to get any and all opinions from everyone. I'm talking about EV Energy Partners, L.P.(NASDAQ:EVEP), they are an acquisition, operation and development of oil and gas properties. Why I believe this is a great div play is this. They are currently paying $0.50/share divs, but the PPS has dropped from $8/share back in Nov to $2.81 bouncing off of a low of $1.91 recently. Let's assume that I were to invest $10k that would 3500 shares at $2.81, that would mean that the div at $0.50 would pay out $1,750 or 17.5%! Where in the world can you find that kind of rate in a year let alone 1 month. Furthermore, their next Ex Div date is the beginning of Feb which is only a month away not 3 months. Also because of plummeting oil prices, now is a great time for them to purchase smaller companies that were doing well and still have good fundamentals and able to sustain themselves even with lower prices.
Here is a link to the company on Google Finance:
Now for the DD and IF's:
Let's start with the IF's:
1. If oil continues to drop then that most likely will have an affect on the stock price.
2. Due to the price drop in stock price, the company can announce that they may reduce the amount paid to divs although I believe that they would have done that by now.
3. They should be announcing their next earnings soon and based on oil prices it may be a negative income for the quarter thus damaging share price.
Now for some DD:
As per this analysts newsletter (link below) that just came out 6 hours ago, it's saying that the stock is a "Hold" and that it should be around $1.94, I do believe this article may drop the price on Monday which would be better for picking up more shares.
EV Energy Partners, L.P. (NASDAQ:EVEP) Receives $11.90 Average Price Target from Analysts - MidSouth Newz
The company recently announced that they have repurchased $74 Mil worth of Senior Notes for $50 Mil which reduces the total debt by $24 Mil and interest payments by $4.8 Mil.
Here is the Link:
EV Energy Partners Repurchases $74 Million of Senior Notes for $50 Million -- HOUSTON, Dec. 7, 2015 /PRNewswire/ --
As per their last earnings statement based on Sept 30, 2015 they were negative $9.8 Mil on the quarter however the quarter before they were positive income of $164 Mil.
Here is the link:
EVEP EV Energy Partners, LP: Financial Reports, Company Disclosure for EV Energy Partners, LP - OTCMarkets.com
This next link has a chart with the earnings and dividend dates which is why I'm expecting earnings to come out soon:
EV Energy Partners LP ( EVEP ) stock quote and company overview - Stockhouse
Here on Stockcharts it's showing that the MACD is on the way back up which doesn't mean much as it can come back down as you can see earlier in the year but I'll put it here for more info:
EVEP - SharpCharts Workbench - StockCharts.com
Again I am looking for any type of opinion and thoughts, good or bad, I know this is definitely a risk especially with dropping oil prices and this may seem crazy but you have to admit that 17.5% is a pretty good return granted that it has to hold itself up.
Last edited by StockLife; 01-03-2016 at 04:16 PM.
01-11-2016, 03:52 PM #2
Well, I haven't purchased this yet and good thing since oil prices are continuing to drop. I'm waiting to see what earnings and dividends payout are going to be.. might not be viable pending on oil prices, shifting focus.
01-19-2016, 09:19 PM #3
So we are getting closer to earnings and dividend dates on this play, I have contacted their Investor Relations person in regards to this manner. They stated that the company has until February 29th which is the last day that the SEC requires filers to file. This is actually good news and here is why, the company only has until January 29th to be able to announce distribution of dividends meaning that the earnings report won't affect the stock price before the dividends come out giving us less risk while holding through the ex dividend dates.
Here is a link showing EVEP historical dividends:
Dividend History for EV Energy Partners, L.P. (evep)
Please note that all of info provided to me is publicly available, I do not break laws to trade.
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01-27-2016, 12:38 AM #4
And this is what I was waiting for, not good at all..
It definitely can rally back to $8+ like back in November but we need oil to go up drastically in order for that to happen.
01-27-2016, 03:56 AM #5
oil and gas is not a bubble, but their value defiantly is. Have you considered other investments? i hear the world shipping industry is "sinking"
PS: get in to FOREX and trade 24/7
01-27-2016, 08:14 PM #6
I trade commodities (oil, gold and silver mostly), banking, mining, tech and other industries it doesn't matter what it is as long as I will make a profit from it. I would love to trade forex, I need to open an account plus i still need to learn a about forex, I already know about the overnight fees etc. What different strategies than stocks do you need to implement and things of that nature.
01-29-2016, 10:51 PM #7
So I bought this yesterday at $2.50 and sold today at $2.74, made more than what I make in 2 days at work... Hundreds of dollars a day keeps the day job away!
02-02-2016, 03:52 AM #8
ok So this Wednesday is the ex div date that I have been waiting for, oil is going down hard at the moment which will drop the share price of EVEP even more for me to pick up more shares. The not smart idea is that as oil goes down, so does this share price so is it really a smart idea to grab this even with those extra shares for the dividend hoping that it will cover a loss in the share price? I don't believe so at the current drop especially if this is the 5th leg down in oil.
What do you guys think?
02-03-2016, 09:51 PM #9
Bought this at 2.50 again and sold at 2.60 today, only good thing that happened to me today.