Ferrellgas Partners, L.P.: Buy the Dip?
Not much has gone right for Ferrellgas Partners, L.P. (NYSE: FGP) since it slashed its distribution in mid 2016. Shares have dropped from more than $20 apiece at the time of the announcement to under $4 in the waning weeks of 2017. They've established new 52-week lows -- which have doubled as all-time lows -- with regular frequency.
That said, there are signs that the U.S. propane market could be in the early stages of a recovery. Prices are significantly higher today than they were this time last year, temperatures are colder, and Ferrellgas Partners has adopted an aggressive customer acquisition strategy to pull itself out of its misery. Should investors stomach higher-than-average risk to buy the dip?
Image source: Getty Images.
Source: Fool.com