MASTER LIMITED PARTNERSHIPS

Tuesday, July 15, 2008

Oil suddenly down 9 dollars...and the dow has come back to minus 20

18 comments:

Anonymous said...: MLP's are a buy. Yields are approaching historical highs, fundamentals are sounds, financing is available and organic opportunities abound.

We just need the market to stabilize.

Alot of fear out there.

Mr. Pipes; 7/15/2008 11:51 AM
Anonymous said...: MLP's are really performing very poorly versus the market the last week or so. It doesn't help that distribution increases are met with a ton of selling.

No real catalyst for upside.; 7/15/2008 1:02 PM
Anonymous said...: market storming higher and mlps are in the cellar. oil imploding.; 7/15/2008 1:04 PM
Anonymous said...: Yeah, we are only linked to oil when it tanks.; 7/15/2008 1:06 PM
Anonymous said...: "No real catalyst for upside."

Baloney!

Please re-read the first paragraph of the post by Mr. Pipes which immediately precedes yours.

Also, much depends on your perspective. If you are a short-term trader, then perhaps you are correct that things will not turn around immediately. If, however, you are a long-term investor, then I find a number of MLPs to be compelling long-term buys at today's prices. ETP (which I bought more of today) is but one example.

Bruce Sherman
Oakland, Oregon; 7/15/2008 1:08 PM
Anonymous said...: It's time to tear up the pipelines, cut up the tanks and load the valves into the dumpster. The scrap metal value is worth more than pipes in the ground right now.; 7/15/2008 1:09 PM
Anonymous said...: Bruce,

I added ETP and WPZ today. Why WPZ is -4% is beyond me??? They will grow distributions by 15%, it will yield 9.50% next year and its GP has billions in assets it could drop down.

I am sick of bottom fishing, but at this point I have no choice.

Mr. Pipes; 7/15/2008 1:13 PM
Anonymous said...: These things just seem to have no bottom. Every damn MLP that I buy immediately drops another half-point.

Glory!; 7/15/2008 1:15 PM
Anonymous said...: There is clearly an large MLP holder who is dumping his entire position. You would have to be a complete imbecile to sell things in this manner. Look at HEP as an example, in about one month that thing has lost 13 points or 31%. Has anything changed that drastically to warrant that move?

Pick any MLP and its the same absurd price action.

These things are yielding 8-12% when fed funds are 2%. They are in an industry that we MUST have-they are virtual monopolies. They will get a large PPI bump at least 6% tariff raise. On and on it goes.

There is forced selling by assholes who levered up and now they are screwed.

We just have to grin and bear it.; 7/15/2008 1:22 PM
Anonymous said...: When these levered idiots are finally done destroying their clients capital, I would expect MLP's to storm higher as there will few willing sellers.; 7/15/2008 1:24 PM
Anonymous said...: What we have here is a major confidence crisis. We need leadership, we only get despair.

I wish someone, anyone would step up and say something positive. We just get blasted, day-after-day, with one negative economic disaster afetr another...The govt cannot bailout everyone and everything.; 7/15/2008 1:33 PM
Anonymous said...: Bruce,

I agree with you and Mr. Pipes, but taking the long view is painful when you are watching your networth decay for weeks on end.

Fed Up; 7/15/2008 1:43 PM
Anonymous said...: Anyone looking at XTEX?; 7/15/2008 1:44 PM
joewxman said...: MLP's are really performing very poorly versus the market the last week or so. It doesn't help that distribution increases are met with a ton of selling."

Ridiculous. MLPS have not taken out their March lows and in fact bottomed last Tuesday and we are still above it. The dow and S&P have continued down although it looks like we may be at a tradeable bottom. We'll see.

Meanwhile Crosstex (XTEX) at 26 is compelling along with Atlas Pipeline (APL) at 37 and on and on it goes. Until the bear goes back in the cave we'll suffer. But please remember we're not a bank or a brokerage house. It could be far worse.; 7/15/2008 2:01 PM
Anonymous said...: HEP is trading like a bank. Look at that thing -6% today. Do the morons selling it have any clue about what the company actually does???; 7/15/2008 2:05 PM
Anonymous said...: As someone with substantial contact with MLP-focused players, I can tell you that "levered" idiots aren't walking away from +8% yields because there's a better gig in town. They are doing it because their investors have become skittish about previously hot MLPs' declining prices, and they have been forcing their funds to liquidate their positions and give return their money. This is usually done on an ASAP basis and the selling is not orderly.; 7/15/2008 2:36 PM
Anonymous said...: Ridiculous. MLPS have not taken out their March lows and in fact bottomed last Tuesday and we are still above it. The dow and S&P have continued down although it looks like we may be at a tradeable bottom. We'll see.

Alot of MLP's are at new 52 week lows, AMZ is meaningless. Alot of rot underneath the index.; 7/15/2008 4:16 PM
joewxman said...: i don't argue the fact that its ugly out there. But to say we are performing worse than everything else. Its bad yes..but we are behaving less badly then some other groups out there.; 7/15/2008 4:42 PM