GOING NOWHERE FAST
Isn't it FABULOUS?
Excuse my frustration but its hard to hide on a day when the dow was up nearly 200 pts and your stocks go nowhere. I think this may be a good time to remind ourselves that this is about aversion to any kind of credit risk. So as long as the credit markets aren't working no money will be working its way into MLPS and continue to find its way out. The good news is that this irrational trading behavior leads to long term opportunities and with yield spreads at 3 year highs its just a matter of time before we have a sharp rally.
Williams successfully priced its offering of nearly 10 million shares so that's done. Also insiders are stepping up and buying Atlas Holdings (AHD) and DCP Midstream (DPM). Open market purchases are bullish. No news this morning and no upgrades or downgrades. Crude is down, nat gas is up, stock futures lower but not by much.
Here comes the open!
joseph cioffi's Source Page - Associated Content
4 comments:
Seems odd that the market is absorbing the GEL offering and actually bidding up the price!? I can't recall this happening before, at least in the last couple of years. I don't read much into this except that it doesn't take much interest to move the price of small caps.
i was amazed that they sold GEL down almost where it was before it made its aquisition that doubled its size. Maybe all the sellers have finally sold!
Yup. Another interesting one is RGNC. It has been hovering around 28, but that's where it was in mid-May -- before General Electric announced it was buying their GP (HM Capital). With all the dropdowns GE has available, the RGNC asset value and hence distributions are going to increase by many times. Correct me if I'm wrong, but isn't that supposed to be a good thing? Has the market forgotten about that?
you are not wrong. I really think that until the credit markets solve their problem, we are just going to be happy with yield return; at least until all this year end crap gets out of the way. Ultimately we'll be at a point where we will look back and ask why didn't we add more shares?
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