Abrams Capital: Drew Pluhar, Travis Rhodes and Billionaire David Abrams’ Picks

8. Suburban Propane Partners LP (NYSE:SPH)

In Suburban Propane Partners LP (NYSE:SPH), Abrams Capital disclosed a new $9.25 million position that contained almost 389,000 shares at the end of the second quarter. Suburban Propane Partners LP (NYSE:SPH)’s stock has plunged by 22% so far this year, but it sports a dividend yield of 15%. For the last couple of years, the company posted worse than expected results, although its last financial report showed a net loss of $0.48 per share, versus a consensus estimate of a loss of $0.59. However, its revenue of $222.90 million was $1.29 million lower than expected. Despite the weak financial results, Suburban Propane Partners LP (NYSE:SPH) has increased its dividend from $0.87 in 2013 to $0.89 in 2017, which worried some investors whether the dividend will be sustainable, especially given the relatively warm winters that the US has registered in the last couple of years. Another investor long Suburban Propane Partners LP (NYSE:SPH) is James Dondero’s Highland Capital, although its stake is much smaller and contains just 30,500 shares.

Disclosure: none