Over the weekend gasoline prices in my nieghborhood went from 2.63 a gallon on Friday afternoon to 2.39 a gallon Sunday night! And crude oil is now under 60 bucks as we have a 59 handle on it. Nat gas is down another 16 cents to $4.70. We also have a collapsing 10 year yield at 4.57% this morning as we head for 4.50. So that enviornment hasn't changed from last week. There are a number of issues here including when or if MLPS will disconnect from the rest of the Energy group...whether end of quarter selling in this group has already all been done...and will Energy prices start bottoming?
No surprise really from Energy Tranfer Equity(ETE), the general partner of Energy Transfer Partners (ETP) makes a big distribution announcement this morning. Will they sell on the good news or continue to rally on the breakout in the chart pattern.? No other breaking corporate news this morning and no upgrades or downgrades.
joseph cioffi's Source Page - Associated Content
2 comments:
I think ETE is still a strong buy below 30 given its growth profile. I have been buying rather aggressively. KMP continues to get destroyed; any thoughts on where it is cheap enough to buy? It yields 7.4% but has a weak near-term growth profile and an impending offering from the soon to be private GP I would imagine. Still like adding to CPNO, ETE, XTXI and LINN, but unsure about the exposure of the gas gathers to the price of natural gas. MLP's overall yield spread to UST's just widens and widens.
I agree with you on ETE. Low 30s on this upleg is do-able...and ETP has been a proven out performer so go with it until proven otherwise. I like your other pics as well. I've been staying away from KMP until after the whole KMI mess is finished. I also don't like the fact that KMP has come up short in the last couple of quarters. Better prospects lie elsewhere.
As per the spread i think the inverted curve with high yields on the short end is having an impact, and the general sell off in all things energy plus end of quarter. At some point MLPS will disconnect and move back according to normal patterns.
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