MASTER LIMITED PARTNERSHIPS

Wednesday, July 09, 2008

I think this describes the mlp investor these days perfectly.

btw if i had to venture a guess the oil market is rallying ahead of the inventory numbers and then sell off as they will be spun bearishly by the market no matter what.

Of course famous last words here and i am not putting my money where that opinion is.

5 comments:

Anonymous said...: Alot of good healthy debate yesterday on the blog about possible tax law changes, possible catalysts for a rally and the influence of leverage in our little world of MLP's.

I would just say that there are always unknowns in investing and that is just an ingredient in the speculative soup.

MLP's own hard assets and are extremely transparent in their business plans. There really isn't any "hidden" danger in them. Sure volumes can drop, pipelines can leak, a hurricane can rip a platform apart, but can't similar events effect any company?

Tax law changes are always possible, but we all know how long debate would take. MLP's are extremely small sliver of the tax base. Would OXY buy 10% of Plains GP if that was something happening next week? I doubt it.

Catalysts, there are plenty, but I would say yield is the major theme. 9%, 10%, who knows? At some point the yield will be too tempting for people to avoid.

I know its ugly, I have gotten smoked that last few weeks, better days ahead I would think so...

Mr. Pipes; 7/09/2008 9:33 AM
Anonymous said...: Merrill initiates coverage of CPNO with a BUY and a $40.50 price target.; 7/09/2008 10:00 AM
Anonymous said...: What a difference a day makes! Jeeze Louise!

Loved the Road Runner clip, Joe. You're right, that says it perfectly.

As for tax changes, your take on the subject make a lot of sense to me, Mr. Pipes. Besides, worry is the interest we pay on a debt we probably don't owe in the first place.

Time and distance has a way of making all these little zigs and zags look like a straight line and considering the compositional structure of MLPs, I strongly suspect that straight line will look like a moon shot. So, don't worry... be happy.; 7/09/2008 10:28 AM
Anonymous said...: mr pipes,
thanks for the comments on tax and other concerns in the mlp space.

you put things in faily good perspective; 7/09/2008 2:20 PM
vidiz said...: Joe you have a great sense of humor. I loved it.

rrcbenjy; 7/09/2008 8:06 PM