MASTER LIMITED PARTNERSHIPS

Wednesday, January 30, 2008

btw..in the interest of disclosure i am long Linn Energy...now that being said...this mlp is so ridiculously mispriced. Just on yield alone...lets say you want to give it a 10% yield...which for an mlp that is growing distributions is ridiculous....but humor me here. That puts the price at 26. Now i know there were supply issues here with priviate equity that hit the tape. Still Linn was being priced for no distribution increase.

I am going to be bold here and predict an up close tomorrow for this one.

6 comments:

Anonymous said...: The market is in show-me mode with LINN. They need to come through with a few steady Q's before they get taken out of the penalty box and given a market multiple.; 1/30/2008 7:24 PM
joewxman said...: i would agree but the penalty seems excessive with a 12% yield...9% okay...but not 12. 10% gives you a 26 buck stock.; 1/30/2008 8:05 PM
Anonymous said...: Same can be said for the APL pig. That thing gets no love at all...; 1/30/2008 8:33 PM
joewxman said...: apl has been seeing some weird trading where it sells off 1 to points intra day and then rallies back into the close. Its been doing this for the last 4 or 5 trading days.

Not sure what is going on; 1/30/2008 8:39 PM
Anonymous said...: LINE & APL are both undervalued due to the massive amount of new units they have recently registered for trade increasing their floats substantially related to recent huge acquisitions.

I know it seems like valuation should be more important than a substantially increased float but you need to remember than many investors that participate in private placements & IPOs aren't long-term investors but are instead looking to get in and out as fast as possible to lock in a quick profit.; 1/31/2008 2:52 AM
Anonymous said...: It's usually a good sign that someone is a shortseller when they refer to such and such a stock as a "pig". I've seen it over and over and over again.; 1/31/2008 8:34 AM