MLPS READY TO PLAY CATCH UP
MLPS have been under some sort of selling pressure the last few days since we hit the 200 day moving average earlier in the week up around 308. I've been wondering whether another hedge fund has been doing a slow unwinding of positions since Tuesday. Even Wednesday's modest rally in the group had a feel of overhang. But no matter because stock futures are blowing to the upside ahead of the fed speech and the President's speech on dealing with subprime so at least we should see a good start this morning. Normally a Friday ahead of a holiday weekend would be a snooze after the open but there is so much going on today. I will remind you again that back in 1998 on Labor Day weekend Alan Greenspan made a speech that put a bottom in equities and set off a 400 pt one day rally when they came back after Labor day and ultimately a 2000 point move to new highs in November of 98. Not saying its the same here but there are parallels.
Legacy Reserves last night announced a small accretive deal. Nice to see in this enviornment. No other corporate headlines and at least at this early hour no upgrades or downgrades.
I have a very busy day ahead as i am taking my daughter off to college and getting her moved in. Also my new horse Farleyshelonwheels is running in Monmouth Park's 7th race. Also i am trying to get some down time ahead of the holiday weekend. So if news breaks between now and 8:30am i will post it. Otherwise i will be gone all day. I will post a recap tonight when i get back or first thing tomorrow morning. Fingers crossed for a breakout today and a safe and fun last weekend of summer for all.
joseph cioffi's Source Page - Associated Content
4 comments:
What does everyone like in the MLP space going forward. I like fast growing CLMT, TLP, LGCY, LINE, EVEP, and some of the bigger names APL, EPD, ETP, ETE, KMP, OKS. I've backed off of some of the names trading at big optionality premiums ie sep, sglp, and ngls.
I like KGS, AHD best currently. AHD is way better than APL, imo.
Despite SGLP's valuation, I like it also. I think SGLP should be one of the most active LPs in the external acquisition market. Also, I believe SGLP has the best dropdown potential of any LP currently.
LGCY & LINE are probably my current favorites in the E&P sector.
I think the entire MLP sector is undervalued right now.
Goodluck.
Joe - Congrats on the win at Monmouth Friday.
On a separate note, I read an interesting article in last week's NYT magazine that combines 2 subjects that would seem to be of interest to you - financial markets and forecasting natural disasters. Here is the link if you subscribe; if not, post your e-mail address and I will send to you.
http://www.nytimes.com/2007/08/26/magazine/26neworleans-t.html?ex=1188964800&en=0211e8fefdd0d022&ei=5070
Keith,
Read the times piece...thanks for the link. I love the part about how the mother cried when she found out her son was going to wall street and the father said the devil had taken hold of him! Also fascinating how the insurance industry completly mis-priced risk from catastrophic events.
Meanwhile Farley did win although it wasn't against the strongest group here. Still it looked like the jockey didn't have to ask for much for the horse to close on a speed favoring track. We may bring him to belmont next if the right race comes along.
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