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duc's 'Margin of Safety' investment

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So AMZA never traded that low.

So purchase 500 at $1.51 of which $124.74 was dividend reinvestment.

New total: 2579

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duc
 
NEW YORK, April 17, 2020 /PRNewswire/ -- The InfraCap MLP ETF (NYSE Arca: AMZA) (the "Fund") has declared a monthly distribution of $0.25 per share ($3.00 per share on an annualized basis). This rate compares to a monthly rate of $0.03 per share paid in the prior month ($0.30 per share on a split-adjusted basis), which was paid prior to the Fund completing a 1-for-10 reverse split. The distribution will be paid April 28, 2020 to shareholders of record as of the close of business April 21, 2020.

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duc
 
How is amza going for you @ducati916 ?
Added a few last week after the price fall..still see a long term annuity like potential for this
Oil and gas will still power the US for the next decades.
 
qldfrog said:
How is amza going for you @ducati916 ?
Added a few last week after the price fall..still see a long term annuity like potential for this
Oil and gas will still power the US for the next decades.
Click to expand...

Anything oil/gas related is hated and cheap currently. If this is not the bottom for the industry, then I don't know what a bottom would look like.

Going forward, the current conditions will squeeze all the competition out of the market. What is left will become very profitable. As AMZA simply holds a basket of stocks, I like this a lot going forward.

Would I like to be buying my initial position now? Of course, but, that's just how it goes sometimes. I'll post an update once this dividend is paid and I purchase further stock. It is actually not as bad as you might initially think.

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duc
 
was definitively not teasing you on this one:I lost a bucket average purchase price 51$ vs current $11
got a bit of distribution but still down to 30% of initial capital outch
 
qldfrog said:
was definitively not teasing you on this one:I lost a bucket average purchase price 51$ vs current $11
got a bit of distribution but still down to 30% of initial capital outch
Click to expand...

Indeed.

But due to its structure (MLP) it has to distribute its income. At the moment the income is down. But as the oil patch improves (paradoxically the oil bust is the best thing that could have happened) due to bankruptcies, lock-ins, etc, so income and distributions will rise. Use the current distributions to add shares: 5 here, 10 there, all makes a difference going forward.

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duc
 
Oil is somehwere near a cyclical low and of course there will be a cyclical bounce higher in the next few years so if you just want to trade the cyclical bounce there may be an opportunity.

But long-term oil and gas are declining industries. Every year the technology for renewable energies improve and they become cheaper and cheapr to produce. At the rate we are going most oil and gas supply will be uneconomical in another 10 - 15 years. The writing is on the wall.
 

1. Probably true.

2. Renewables are currently a (bad) joke, based I must admit on a fairly limited amount of research. But based on that (limited) amount of research, I do not see oil/gas being 'replaced' by renewables as they exist today, ever. Now if something 'new' pops up, I'll reserve my right to amend my position.

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duc
 
Once I receive May's dividend (already have April's) I'll re-invest (bi-monthly going forward) them.

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duc
 
Update:



Starting Capital $10,000
Current Equity Value: Shares #306 = $9201.42
Cash: $1,407.67

Total: $10,609.09

So now showing a small profit. Taken some time. From Jan 2019 to today. The challenge was I think for 5yrs. That means 2yrs to go.

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duc
 
Starting Capital $10,000
Current Equity Value: Shares #366 = $11, 635
Cash: $1,427.54

Total: $13,062.54



It will run until 2023.

With energy where it is currently, should continue to do well.



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duc
 
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