Monday, January 14, 2008
Buckeye Partners (BPL) is down over 1 dollar. No news there but it is dragging the MLP index down to the lows of the day while the dow rallies to the highs of the day. Isn't that special! Can't catch a break although the loss is a contained half a point. Only thing i'm noticing here is that volume seems to be drying up and bid ask spreads on some of these are getting a bit wide. Volume drying up is a good thing when you are selling off but this could also mean just a respite in the selling. Who knows. Getting frustrated here.
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joseph cioffi's Source Page - Associated Content
4 comments:
BPL killing me today...I'm going to buy some more...
Someone is puking up BPL.
I have a managed portfolio made up primarily of MLP's and I spoke with the manager today to get his take on things. His opinion (he has been focusing on MLP's for eleven years) is that we own fundamentally strong businesses paying good dividends and distributions are expected to rise. Eqity issuance overhangs, hedge fund liquidations, the credit debacle, etc. will all work themselves out in time. Hang in there. Fundamentals are strong. Hope that cheers you up (and more important, I hope he's right).
I talked to Doug R. last week and got the same spiel. He's had a great ten year performance but I hope this is not the start of a "return to the mean" scenario. I sure don't want to see a 12% principal decline to get a 7% interest return. BTW,those hedge fund liquidations were six months ago. As soon as we start to hear, "only weak hands sell here", it usually means, "let me get out before you do"!
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