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Wednesday, August 22, 2007

Bank stocks are weak and brokerages are mixed to lower going into the afternoon. MLPS at the highs of the day up 4 1/2 points and just under 300. Will watch carefully in case the selling spreads but MLPS holding up well.

2 comments:

Anonymous said...

just curious to know what you all feel will be the effect of current tight credit on the growth of upstream oil and gas MLPs? I'm writing a story.

joewxman said...

i think once credit markets settle down and the marketplace begins to sort out the whole mess, MLPS should have no problems doing deals. Most of the deals lately have been done doing some sort of priviate placement of equity (see APL,LINE) and as long as they can at least partially finance their purchases this way it should be no problem.

For the unitholder the market has priced back in risk in the yield spread, insiders have stepped up in the last few days and have bought shares, in some cases with both hands. I think that is a great statement of confidence in the future