Thursday, December 5, 2013

High Volume High- Dec. 4 Trading Day Edition

Expanding one name on the volume movers list, CF Industries popped, along with with many other names in the fertilizer business by the way, on talk that the company was exploring the potential change its corporate structure to a master limited partnership (MLP) from a C corporation. You could look up the definition of an MLP that would go into far more than what I am about to briefly describe but an MLP corporate structure allows and requires most of a companies earnings to passed through to equity owners in the form of dividends. In turn, the corporate entity gains a tax advantage. I would not be surprised if more resource or asset rich companies explore this option.

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