John Burke
StoneMor Partners LP
STON-N
DON'T BUY
Aug 22, 2016
A Master Limited Partnership, meaning they pay no taxes. Cemetary business. Own it if you are income oriented, because it has a high dividend. It has not been a growth company, so he prefers higher income companies. Dividend growth is the surest way to make money. He prefers 3% dividend and 6%-8% earnings yield, expecting that some of that earnings would translate into dividend growth.
Top Short Noting wrong with business. It is the capital and financing structure. Trading at 26x. Negative free cash flow in the last couple of years. Distribution is not sustainable.
A Master Limited Partnership, meaning they pay no taxes. Cemetary business. Own it if you are income oriented, because it has a high dividend. It has not been a growth company, so he prefers higher income companies. Dividend growth is the surest way to make money. He prefers 3% dividend and 6%-8% earnings yield, expecting that some of that earnings would translate into dividend growth.