Why Rentech Nitrogen Partners Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Rentech Nitrogen Partners fell as much as 17% today before recovering to a 6% loss at the end of trading.

So what: The drop came after management updated its outlook for this year and next. One surprise was a repair at the East Dubuque facility that will restrain ammonia production from 1,100 tons per day to 790 tons. The repairs will take around 90 days. The company also expects the fourth quarter to be weak because of low ammonium sulfate prices, and the Pasadena Facility will still run negative EBITDA in the fourth quarter.

Now what: There's really nothing to get excited about here, and to make matters worse, management pushed the normal distribution from 45 days after the quarter to 60 days after the quarter. This news comes after the distribution was reduced 68% to $0.27 per unit for last quarter. I don't see any positive momentum for the company operationally, and with so many factors up in the air, I don't think today is a good buying opportunity for investors.

Dividends for decades to come
Dividend0paying stocks can provide great income for investors, but an MLP like Rentech can make for a volatile payout. Our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

The article Why Rentech Nitrogen Partners Shares Dropped originally appeared on Fool.com.

Fool contributor Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.