TNH

[Trapshooter]

Clifp
Thanks for posting that info. Use caution if you are going to short this thing. Who knows how far up it will run before everyone realizes the distribution will be cut. Also, If you are short when it goes ex div, you have to pay the distribution.

 

[clifp]

Well it isn't $200 yet, and Schwab won't let me short it with paying a fee. So I guess I'll watch from the sidelines.

Still I'd be very cautious holding this stock for the long-term. I suspect the distribution cut will comes as rude awakening to many holders.

 

[Art G]

First off, I've held it in an IRA without any tax problem. Secondly, if I understand it, the product is a diminishing return, just like many other gas and mineral stocks I've owned in the past that have just continued to pay off for years.
I appreciate all the info posted here and will watch it closely. Perhaps I'll lower my target price on it and definitely keep moving up my stop losses.

 

[clifp]

First off, I've held it in an IRA without any tax problem. Secondly, if I understand it, the product is a diminishing return, just like many other gas and mineral stocks I've owned in the past that have just continued to pay off for years.
I appreciate all the info posted here and will watch it closely. Perhaps I'll lower my target price on it and definitely keep moving up my stop losses.

Art when I've held MLPs in an IRA, Schwab always bombards with dire warnings that if the MLP generates more than $1000 in unrelated business income, my IRA will owe money to the IRS, and Schwab while charge me a bunch of money $50-200/hour to file custodial tax returns for my IRA.

Now most of the MLP (pipelines, propane distribution, even an amusement park, and various Hawaii start ups) I own generate a negative UBTI so this wouldn't be a problem. However, my understanding is that even modest positions (say $10-20K) in a partnership can earn more than $1,000 of UBTI. I just skim the IRS pub on unrelated business income, and it is truly arcane so be careful...

 

[FinallyRetired]

Well, I jinxed it. Just when I added some more it took a nosedive. It's now hovering $1 above my stop, so I'm sure I'll be stopped out in the morning. Nice ride, though, 33% profit in 2 weeks.

 

[Art G]

Art when I've held MLPs in an IRA, Schwab always bombards with dire warnings that if the MLP generates more than $1000 in unrelated business income, my IRA will owe money to the IRS, and Schwab while charge me a bunch of money $50-200/hour to file custodial tax returns for my IRA.

Now most of the MLP (pipelines, propane distribution, even an amusement park, and various Hawaii start ups) I own generate a negative UBTI so this wouldn't be a problem. However, my understanding is that even modest positions (say $10-20K) in a partnership can earn more than $1,000 of UBTI. I just skim the IRS pub on unrelated business income, and it is truly arcane so be careful...

I guess I should know all of this, but I swear this is news to me. I've owned quite a bit in IRA's and never seen nor heard any problem tax wise. I appreciate the info. I once had some Duke energy preferred that turned into a tax nightmare. I'll have to delve further into this. Thanks for the info.
BTW, So far, this pullback looks like nothing more than a buying opportunity. However, I'd want a stop now at $145. JMO.
Did I mention this stock can be quite volatile?

 

[FinallyRetired]

BTW, So far, this pullback looks like nothing more than a buying opportunity. However, I'd want a stop now at $145. JMO.
Did I mention this stock can be quite volatile?

Not sure about that, Art, so far this looks like a similar dive in Jan just before earnings. It hit the same resistance and dived down to nearly 120. I got stopped out this morning, but thanks for a great ride. I'll keep it on my watch list. Oh, the volatility is incredible, great for trading with money that won't break you if you lose it.

 

[Art G]

I could very well be dead wrong, but I think this stock still has at least another weeks good run in it. JMO definitely.

 

[clifp]

I guess I should know all of this, but I swear this is news to me. I've owned quite a bit in IRA's and never seen nor heard any problem tax wise. I appreciate the info. I once had some Duke energy preferred that turned into a tax nightmare. I'll have to delve further into this. Thanks for the info.
?

Back in the mid 90s I had never heard of AMT. A woman at work said I should go talk to accountant since she got hit with AMT and I had more stock options than she did. When I finally went to an accountant he introduced me the wonderful Alice-In-Wonderland world of AMT, and subjecting me to decade plus of tax misery. I found that there are all kinds of deadly silent vipers lurking in the tax code. Most of the time you can remain blissfully ignorant of the dangers and keep more money in your pocket. Alas the IRS pit vipers can strike without warning and deadly consequences. The good news is there are so few hungry vipers that your risk of targeted are small. All things considered, many times I wish I had remained ignorant of AMT and taken my chances... Unrelated business expenses and IRAs may fall into this category.

Who is your IRA with?

 

[Art G]

OK, I'm convinced TNH won't be coming back up for a while. If it follows its earlier trends, it hits bottom in June and hits a peak around the last week of July.....perhaps. JMO.

 

[Art G]

Well, TNH is forming a flag formation. Which way will it go? Too bad they don't offer options on this stock. It would be the greatest of straddle plays.

 

[Art G]

Support at $123.38. Currently $126.51. Can it go on another run? I'm suspiciously optimistic. JMO

 

[Art G]

The only thing looking good today?? Is it ready for another run? Mebbe.

 

[Art G]

Up about $7 today. Although I'd feel better about it if it gets through $138.