INERGY POSTS EARNINGS
WHILE MARKETS FIRM UP!
Record earnings posted this morning for Inergy LP (NRGY,NRGP) which lately has done nothing to move MLPS, but maybe today will be different as we have firm markets and fed speak that is pointing to an interest rate cut on December 11th. Stock futures are sharply higher and even the dollar is rallying today so maybe..just maybe MLPS will move up with everything else today.
Genesis LP (GEL) is doing a stock offering of 7 million shares which only adds to the equity supply issue for MLPS. This news was out last night. No other news this morning. K-Sea (KSP) is getting a buy nod from Citigroup this morning.
Stock futures up 15 points and near the highs of the morning and the yen is approaching 110. Lets hope we get a kick in the ass this morning.
joseph cioffi's Source Page - Associated Content
3 comments:
is sub-prime issues effecting the mlp market??
I think that sub-prime has an indirect influence on all markets in that the "pecking order" of risk has been put into question.
IE: one used to believe that AAA bonds "secured with real estate" were the safest "non-government" default risks around. Bank and Brokerage Debt was next in low default risk.
MLPs were (are) lower rated than the above.
Throw in the Dollar weakness ( foreigners are motivated sellers ),
supply ( secondaries ), and tax selling to the mix and it's a tough market.
There doesn't seem to be risk ( except for USS ) to distribution cuts, and the average MLP probably will increase distributions by 8%+ next year. So it's likely that the MLP sell off is imho "overdone".
Tax selling will end, the secondaries will be placed, and
eventally the dollar will find some stablity. Of course when the Fed lowers rates, MLPs generally rally.
jf50
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that was well stated, thanks, LF
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