I guess my hedge fund unwind theory gets a boost today as a number of MLP's had big block trades at the close. The list is pretty long and they all posted around 18:15 eastern. Somebody needed to get out and in fact any uptick today was met with more selling.
APL...243,600
DPM..46,000
OKS ..57,800
KMP..55,700
EVEP...31,500
ETP...35,600
XTEX...27,751
HEP...20,400
BPL....138,900
LINE..75,000
NSH...85,600
and so forth and so on. Is it some sort of capitualtion?
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About Me
- joewxman
- a meteorologist with a knack for trading and investing in MLPS! I also like horse racing, enjoy cigars and a good port wine.
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6 comments:
joewxman,
Have you discovered what factors influence the movement of MLP's ?
Is it the price of oil or bonds, or interest rates?
I have compared the price of NS and SPH to many indicators and can't seem to figure out why the prices fluctuate the way they do.
Thanks
i think if these were normal times we could better correlate these things. I've seen mlps generally go up as rates went down but that hasn't happened here. I've seen mlps rise with energy..that hasn't happened here either. Right now everything makes mlps go down. But i think the thing to watch is the 2 year note yield. It has been a measure of fear. I think that as that rate rises we could see mlps stablize and rally.
I purchased my MLP in my IRA.
Was that a mistake ?
YES
the purchase of MLP was a mistake.
Never say never.
You are only at risk if your TOTAL UBTI is $1000 or over per IRA per year. The question that is most important here is can UBTI exceed annual distributions or what is the typical UBTI percentage of distributions? Factoids on Investorsvillage and Yahoo is collecting UBTI information from investors and will post his findings.
IF, however, UBTI can never exceed total annual distributions, then at 8.2% yield for EEP and $46/unit today you could own 263 units, if 100% of distributions were classed as UBTI. Of course you would calculate a safety margin for increasing distributions and not hold 263 units...
More likely though only a fraction of the total distribution is UBTI. Thus, you could hold a much greater amount of partnerships in each IRA.
The rules as I understand them (not a CPA, Tax professional, do your own DD) specify that each individual IRA can have no more than $1000 of UBTI per year. Thus, you can't own 263 shares of EEP and additional units of other MLPs. However, if you have several IRA's there doesn't appear to be any rules against holding up to 263 units of EEP in each account.
Last comment, of course you run a risk with the IRS, but this may only amount to paying the taxes on the portion above the $1000 UBTI. AGEdwards for instance will charge you $250 for filing the taxes on an IRA for you if this happens. Note: you are not responsible for filing, your broker is. That may be why brokers discourage investors from holding partnerships in IRA's. However, again ... consult a professional.
I wait for Factoids analysis on real data from a large data set. However, there are some documents on Yahoo Groups "mlp_research4" including one by Miller Howard Investments that address this issue.
Not a CPA, Tax pro, do your own homework...
Cheers,
Southshoreinvestor
somebody is going to make a crapload of money off of the market...while i watch and wait for my "safe" investments to rebound
yikes it's not a fun screen right now
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