MARKETS CALMING DOWN

MLPS RECOVERING!

Back over 300 on the MLP index after a 5 point gain yesterday. And it looks like the rally will continue to start today as nothing blew up last night and everyone seems to be settling down. We will be getting our distribution checks tomorrow which is a reminder of being nicely paid to hold em. Lots of bargains out there especially on a yield basis.

MLP YEILD YEILD AT HIGH
Transmontaigne..............................7.00% 5.19%
Energy Transfer Partners.............6.80% 5.09%
Nustar..............................................6.20% 5.31%
Kinder Morgan Partners...............7.00% 5.96%
Atlas Pipeline Partners..................7.20% 6.20%

These are just a few examples that from a yield perspective i think we have now returned to fair value here and certainly we're in a much cheaper place to buy shares.

Newswise Linn Energy (LINE) waited until 10pm last night to issue earnings. I don't know why they do this under the cover of darkness but the press release looks ok and the company restated the pre announced 7 cent distribution increase for Q4 to 63 cents a share. I think this is part of the reason why Linn did not drop nearly as much as the other MLPS since it has a going foward yield of 7.2% so there was no yield premium in the stock price.

I mentioned Transmontaigne (TLP) in the yield group because they ahve a double upgrade this morning as Wachovia goes to outperform from market perform and Citigroup goes to buy from hold. This one has dropped from 38 to 28 in this selloff.

Its an early post to start the day. As of this post energy futures are higher and natural gas broke through 7 dollars yesterday on possible tropical storm activity and heat in the south. Stock futures are higher but off their highs this morning and a little below fair value. And rates on bonds are stable this morning as we wait for ppi.

Headlines as they break this morning.