Friday, May 04, 2007
Down 1 and some change on the MLP index although again we have some distortions with respect to ex-distributions. Natural Resource Partners (NRP) was down 3 points at the open on the Citigroup downgrade but has since cut the loss in half. Williams is down about 30 cents on its downgrade. I've noticed lately with the group getting downgraded stock by stock is that the first downgrade does the most damage and each one that follows does less and less. Magellan Midstream (MMP) for example dropped from 51 to 46 over several days on a Citigroup downgrade but when Lehman cut them yesterday the stock actually closed higher. And in the case of Nustar (NSH) the houses have cut and the stock keeps going higher...which means that the fundamentals in the gasoline market are probably far more important than any anal-ist opinion.
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