MASTER LIMITED PARTNERSHIPS

Wednesday, January 23, 2008

Oppenheimer starts Crosstex (XTEX) at an outperform with a $37 target.

14 comments:

Anonymous said...: UBS on our "sister" sector REITs, could the Feds easing also boost MLPs ( and would GS or UBS start them with a trong buy at these levels ?)

Excerpt from article:

REITs may get respite from Fed rate cuts

By John Spence, MarketWatch
Last update: 9:56 a.m. EST Jan. 23, 2008Print E-mail RSS Disable Live Quotes
BOSTON (MarketWatch) -- Real estate stocks have corrected hard after outperforming the market for seven consecutive years heading into 2007, but a more aggressive Federal Reserve on interest-rate cuts could put some shine back into the shares, according to UBS.
Analysts on the global real estate team found that U.S. real estate investment trusts, which are public companies that own and operate commercial real estate portfolios, have outperformed the market by more than 3% on average in the three months following a Fed rate cut.
In a surprise move between formal meetings, the Federal Open Markets Committee on Tuesday lowered the overnight lending rate by 75 basis points to 3.5%.
Although the UBS analysts noted "every cycle is different," they pointed out REIT stocks got a boost Tuesday in the wake of the Fed news, rising more than 3%, while the market as measured by the S&P 500 Index

JF50

http://www.marketwatch.com/news/story/ubs-sees-real-estate-stocks/story.aspx?guid=%7B621376AA%2D5B2F%2D4540%2D8873%2DF16AC492E2B2%7D&dist=hplatest; 1/23/2008 10:05 AM
Anonymous said...: The rate cut should have brought some buyers to MLP's. That just is not happening, we are in for a long slog.; 1/23/2008 10:43 AM
Anonymous said...: We know this is a very succesful blog by the professional bashers attracted in recent weeks.
Keep up the great work, Joe!!
V; 1/23/2008 10:59 AM
Anonymous said...: I wonder how much of the anxst is generated by concern about possible changes to preferential tax treatment that MLPs receive if Democrats get control of the Presidency. There is a nearly hysterical cry to "change" in the way taxes are collected.

SHK; 1/23/2008 11:15 AM
Anonymous said...: Even the dumbass Democrats would be hard pressed to pass new corporate taxes through in an environment of deterorating corporate earnings.; 1/23/2008 12:08 PM
Anonymous said...: Thanks for the dumbass political comments dumbass !; 1/23/2008 12:21 PM
Anonymous said...: Another day of carnage.; 1/23/2008 12:51 PM
Anonymous said...: At what point does the yield on the average MLP become attractive to new investors? 8%, 9%, 10%???; 1/23/2008 1:02 PM
Anonymous said...: I wonder if the latest selling is due to yen carry trade unwinding. I know some hegdies are levered up in MLPs via the yen carry and the yen has been on a tear this week.; 1/23/2008 1:15 PM
Anonymous said...: Is a fund with large MLP holdings blowing up? I realize the market stinks, but the price action today seems a bit overdone.

DS; 1/23/2008 1:22 PM
Anonymous said...: Even ONEOK (OKS) is getting pounded today....
I wonder how long it may take for the demand for stocks to return.
Since almost everything is already down over the past month or so maybe the slaughter is about over?; 1/23/2008 1:40 PM
Anonymous said...: On the question about yields, I had calibrated my attractive buy prices for pipeline MLPs when the yields were between 7 percent and 7.5 percent a little over a month ago. I didn't think that some of the prices would ever be available. Now, I'm looking at 8 percent for the same group of stocks and wondering if the prices will blow right past it and continue down. Where does it end? 8, 8.5, 9 percent??; 1/23/2008 1:45 PM
Anonymous said...: I can't believe how badly some of these things have been annihilated.

NSH is acting like it's going out of business. ATN will be paying a distribution of almost 10% if they hit the upside of their distribution estimates for 2008.

These things are definitely not in style right now. I would have expected the opposite - that in a declining interest rate environment you would see some stability from these things.

As many people often state, I'm sure that some of the selling is due to margin calls, the Yen carry trade unwinding, etc.. However, given the small size of many of the trades that are driving these things down, I suspect that simple panic is a major factor. These things are so illiquid that when you get any significant selling, the price drops precipitously which in turn causes still more selling.

I think that we're in such a cycle now.

- Roulette; 1/23/2008 1:49 PM
Anonymous said...: I agree roulette. Also, I think many investors are not buying because they think prices will be lower tomorrow or the next day. It may take a while for the situation to normalize.; 1/23/2008 1:58 PM