We have news this morning which i think comes as a bit of a surprise. General Electric is taking a large stake in Regency Partners (RGNC) as it buys up 91% of the general partner and a 37% stake in the LP. I guess GE sees some value here.
Sometimes this kind of news can light a fire under the group as investors start to look around for similar situations. Stock has been one of the underperformers among MLPS lately but today's news will turn that around.
Elsewhere this morning it is another quiet start. There has been some buzz about Linn Energy (LINE) and whether they are about to announce another big deal. Today is their annual meeting but so far nothing on the wire. Energy markets this morning are a little soft in overnight after crude ran up yesterday and sits just under 69 dollars. 10 year has calmed down and is at 5.14% so that 5.25% top appears to be holding. Nothing has appeared on the upgrade downgrade list.
In the world of Terra Nitrogen (TNH) it is clear this one is on another one of those upside momentum moves. The stock was up another 5 dollars yesterday and just continues its runaway upside breakout move from last week. Its one of those things that one can only watch with awe...unless one was brave enough to buy a month or so ago when the stock corrected down into the upper 70s. Remember for you brave bulls among you that pullbacks in these things can come anytime and they can be quite violent.
Back to the 10 year, we are at the top of the range but that top is holding which saved the overall market last week and it save the MLP group as well. As long as5.25 holds which is the high from last summer we're in good shape. But that chart is bothersome.
joseph cioffi's Source Page - Associated Content
2 comments:
I think RGNC struggled in the last 6 months or so because of its general partner, HM Capital (aka Hicks-Muse). While this is an established, top-flight venture capital firm, the problem was they did not possess a suitable stable of assets that could be dropped down into RGNC. I think the market realized this and was punishing them. The GE sale appears to solve that problem although I wonder why GE wouldn't start-up their own MLP?
GE buys because it sees value which i think speaks volumes for the group in general
Post a Comment