That’s what we all want to see, right? A skinflint CEO who skimps on perks and saves money for shareholders, and who pays out cash to those shareholders (well, that’s what we want to see if we don’t work for him, at least).
And that’s what Roger Conrad is teasing today for his MLP Profits newsletter, a project he co-edits with Elliott Gue that’s focused on, you guessed it, MLPs. Those are Master Limited Partnerships, in case you’re not in the know on that, pass-through entities that usually own energy infrastructure assets and pass their free cash flow straight through to investors in the form of dividend-like distributions.
MLPs are loved by many investors both for these high dividends and their utility-like stability in most market conditions, and for the tax deferral that they provide — we’ve talked about them many times in the past, including a long discussion of the MLP-teasing “10-86 Payback Plans” a month or so ago, but this time we’re getting an exciting tease for one specific company in the sector… so let’s sniff out those clues and identify Conrad’s pick for the legions of Gumshoe Readers, shall we?
That is, unless you’d rather sign up for the newsletter for $497 and get the word straight from the horse’s mouth.
No? OK, moving on …
The intro to the ad focuses on the penny-pinching ways of our CEO:
“He’s management’s worst nightmare… and a shareholder’s dream come true.
“His net worth is over $7 billion, though you’d never know it by looking at him.
“He doesn’t have his own jet… and when he flies, it’s in coach. When he travels, he stays at Red Roof Inns.
“His annual salary? A whopping one dollar.
“Yes, you read that correctly. And it’s just one reason why he’s been able to make so many investors so wealthy.
“In this volatile age of bailouts, bankruptcies and shredded portfolios, he operates one of the safest, surest and most lucrative enterprises in America—without paying a cent in income tax.
“And it’s made many investors up to 2,500% richer.
“In fact, on November 14, you’ll have a chance to share in these riches when he gives away $382,000,000.”
As we noted, he ain’t “giving away” $382 million — these are pass-through entities and they’re designed to funnel free cash to shareholders, so the company is just fulfilling its mandate. It happens to be a big company, so it’s a big number, but we’ll get to the “per share” numbers in a minute to give some perspective.
We get the full story of this CEO’s background, too — something the folks at Investing Daily love to do, pitching us on the CEO’s life to po