Friday has arrived and its been a very interesting week. So lets cap it off this morning with earnings from Ferellagas (FGP) which look good...margins were good...and the company backs 2007 earnings forecast.
The chart is not the most inspiring in the group but there is a chance this could break above 23. might be nice if they decide to grow their distribution.
Speaking of growing distribution I want to go back to the 2 companies that announced deals yesterday. EV Partners and Duke Midstream. Both companies aquired assets of size and EV preannounced another distribution increase for the second quarter to be paid in August 07...although no specific amount was given. Duke Midstream bought assets from Anadarko Petroleum and gave a positive view but nothing specific. Now look at the day charts of both.
It took nearly 3 hours for money to come in and move Duke Midstream. It took less time for the reaction in E V Partners but you still had a good hour to pick up the stock fractionally higher from Wednesday's close before it had a big runup to 31. Amazing that this group has so few people paying attention to it that it can take so much time to run up a stock on good news. I'm sure that liquidity plays a big role as no one wants to run a big block at the market and drive up the price you want to pay but the stocks do eventually get to where they are supposed to go. As per the press release for Duke Midstream it is planning to finance the deal with an equity sale so be advised that a secondary may be coming here. EV Partners says it will finance the deal with its current credit facility.
Not much else going on this morning in corporate news and no upgrades or downgrade to speak of so its all about the employment numbers this morning and whether the market will continue its snapback rally out of a V-shaped bottom
We'll find out soon enough but if the numbers are very bad then we'll probably break down below last week's low and head under 12K (hopefully not in one day)...if the numbers are good then we take out resistance and start a run back toward the top of the chart. As Bette Davis said in ALL ABOUT EVE..."Fasten your seatbelts...its going to be a bumpy night!"
Just a few side notes...i've added the yahoo bar with news headlines. Just click on the MLP on the list to display headlines or just put in your favorite symbol. Also i will begin looking for relevant video clips for energy and stocks in our group. CNBC has this money and energy preview
joseph cioffi's Source Page - Associated Content
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