What a disaster yesterday for Boardwalk Partners (BWP). You don't see moves like this very often but the stock was down over 3 points yesterday; reacting to this 10k filing which is citing cost overruns on its pipeline expansions, which may lead to more equity being issued, which means more dilution, which led to 2 downgrades, which resulted in the 3 point slicing. Lesson here is that there is no such thing as a risk free investment in MLP land. Now does it bounce a little in here or does this falling knife have more to go?
Speaking of falling knives Linn Energy (LINE) was one for such a long time but that stopped last week and the stock is up nearly 5 points of its low. Now we have earnings this morning whch when you strip through the headlines...actually look pretty decent. All the important numbers look good. We'll see if the market players see it the same way.
The other issue yesterday was the nearly 4 point decline in the MLP index but much of that was from the 2 stock offerings of Kinder Morgan Partners (KMP) and Enbridge Energy Partners (EEP) which was a big drag. Most mlps were flat to slightly lower. Still sitting above 290 on the index so that continues to provide the floor of this base which we have been building apparently since August. At least lets hope its a base and not a plank we're walking.
No other headlines this morning and nothing yet on the upgrade downgrade list.
joseph cioffi's Source Page - Associated Content
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