Paul,
You are fortunate. You bought it when, I assume, it was recommended in June, 2009 around 10 or so. MLPP said to SELL half in April, 2010 when it had doubled. If you had sold, you would have recouped your original investment. You would have Zero basis in the remaining 500 shares. You received around $5,000 in dividends and they are worth about $5,500 today. So, you have a gain of $10,500. But, remember, you had your original $10,000 to reinvest and make a profit on. Since that was in the heyday or the recovery from the crash of 2008/09, you could easily have doubled that….but say only had 50% or another $5,000. So, you would have a total of $15,500 profit.

Today, you have 1000 shares worth $11,000 or a missed opportunity of $4,500.

The MLP’s were almost like manna and you could hardly go wrong. I bought a mixed basket of them. Purchased EPD in December 2008, based on my own research prior to subscribing to MLPP as I needed income. Paid $24 per share. That is split adjusted now to $12. In mid 2013, I had received $12 back in Distributions. So, I was “even” or got my original investment back. Since then, it has paid about $4.50 MORE. I have a Negative Basis in the EPD.

My point is this. TIMING is everything. If you had purchased NMM later on when MLPP kept raising the Buy-Up-To price and dollar cost averaged, then you COULD be like me and have an average cost of $16 per share. However, with dividends…..which are mostly Return of Capital…as yours are, the cost adjusted basis would be around $12.50. Still underwater on it as it is around $11 or so.

Could cite an example of selling CVRR last October @ $24 and purchasing APU and being very cash positive, after distributions of about 30%.

If your broker is following SEC regulations, your adjusted or 1099 reported basis in NMM will be about $4 per share as about 2/3’s of NMM’s dividends are NOT earnings, but Return of Capital. So, you may only have a $1 profit (paid $10 and worth $11). But the IRS reported basis will be around $4, so you will have a long term capital gain of $7,000 or owe about $1050 in taxes if you sell.

Still NOT A BAD DEAL….but most MLP’s are designed to be help for your estate….they provide a hefty income (that was their intent), but no one ever realized how much RoC was going to be there and when you sell, the tax man comes calling.

I am with you on the NMM and want it to recover to the mid teens….Then I will still have an annualized return in the 8 – 9% or so….which is not bad.

Nothing new to report. I hate ascribing a single reason to non-dramatic drift in market prices over a span of days or weeks. Writing a daily market column for years taught me better.

You should be getting the new monthly issue in a few hours today.