GPP - Green Plains Partners: The 11%+ Yield Returns With A 50%+ Potential Upside
- Green Plains Partners have sent their distributions surging by more than 200% after refinancing their credit facility.
- They can cover these new distribution payments with their ample free cash flow, although there is little scope for growth given their almost non-existent capital expenditure.
- Thanks to their very low leverage and strong liquidity, their financial position is very healthy and thus their distributions are safe and sustainable.
- Based upon my Monte Carlo Simulation, it appears that their intrinsic value is at least 50%+ higher than their current unit price even without any future growth.
- Given these very impressive prospects to generate significant alpha, I believe that upgrading my rating to very bullish is now appropriate.
For further details see:
Green Plains Partners: The 11%+ Yield Returns With A 50%+ Potential Upside