Northern Tier Energy Approaches Target Price
The open 30 Day Dividends position in Northern Tier Energy (NYSE:NTI) has moved up to $26.24, just 21 cents short of the $26.45 target price set when the position was opened on December 1, 2014. This email is to let you know that I plan to keep the trade open even if the target is reached this week.
Northern Tier is scheduled to announce first quarter results on May 5, and I am expecting a large distribution announcement. If the variable distribution is $1.00 or more (I have forecast $1.50), the unit price could move well above $27. At that point I will close the trade before NTI goes ex-dividend to lock in the maximum profit.
An additional word on Northern Tier Energy: I feel this MLP is the best in class of the refinery owning partnerships. It would make a great long term, cash flow generating holding, if you work to accumulate shares when the price hits its regular down swings. For my 30 Day Dividend recommendations, I will still look for shorter term entry and exit prices to generate short term profits, but I also wanted to let you know that I like the company as a longer term investment, too if you’re looking for one like this.
Recommendation: Hold NTI until the Q1 distribution is announced and then watch for a sell recommendation email.