MASTER LIMITED PARTNERSHIPS

Thursday, January 24, 2008

UP 5 and change and over 288 and at the high of the day. Gasp! Linn Energy (LINE) is up!

Lots of 1 POINT winners and Energy Transfer (ETP) is up 2 and change leading the way. Natural Resource (NRP) Buckeye (BPL) Sunoco Logistics (SXL) Magellan Midstream (MMP) are 1.50 winners. EV Partners (EVEP) Suburban Propane (SPH) and Boardwalk (BWP) are up 1. Lots of fractional plus signs on the board as well.

Just a few issues on the losers list and except Inergy Holdings (NRGP) which is down 1 and change but volume is low.

Could we get a close over 290?

4 comments:

Anonymous said...: LINE item from jrad in the Yahoo message board:
My guess on the weakness in MLPs in general is mostly supply and demand. I don't know the numbers, but many MLPs and GPs have come public in the past year or so, and even more are in registration. Many of these are fairly small operations, with not much to distinguish themselves. So they have a small pipeline or small gas gathering operation or (LINE) a small oil & gas production operation, and there's not enough size to interest analysts in following them. Couple that with the nonsense that LINE and APL (among others) pulled last year, and you start to lose a lot of investors's interest. I'm referring to LINE's purchase of assets from Dominion last year, financed (in part) by a large sale of units at below-market prices. So LINE announced it was selling 48 million units at $ 31.25, at a time when its units were trading around $ 36 or more. I know I sold at that time. It gave the new investors a reason to short the stock at prices above their $ 31.25 to lock in their gain. And this increased sales beyond the market�s real interest in LINE. So daily volume for the 6 months before the deal was 90,000 units and daily volume since the deal is 423,000 units. Finally, LINE then hedged its production prices to help finance the deal, which helped chase away investors who wanted exposure to oil and gas priuces. All of this might help the business, but a lot of investors didn�t want to hear it.

It's unfortunate; LINE is one of the few MLPs that do not have a GP with large IDRs, which is what interested me in the first place. I haven�t followed it much recently, and was surprised to see just how far it had fallen.; 1/24/2008 12:00 PM
Anonymous said...: In addition, many MLP's have stock scheduoled out of lockups soon which keeps a lid on prices.

Have any of yo checked the closed-end funds in MLP's? TYG is up 7% today.; 1/24/2008 1:03 PM
Anonymous said...: MLP's starting to fade...; 1/24/2008 1:13 PM
Anonymous said...: HEP 39.99 high now 38.80
SXL 51.00 high now 49.75
ETP 51.85 high now 50.85
SGLP 28.07 high now 25.35

we need follow through or we'll just roll over again...; 1/24/2008 1:27 PM