MASTER LIMITED PARTNERSHIPS

Monday, August 25, 2008

Spoke a bit too soon as the mlp index is now getting pulled down below 266 and at the lows of the day; down 1.63. Kinder Morgan (KMP) is the big drag and a big component here down 68 cents.

11 comments:

Anonymous said...: Seeing more new lows out there. MMLP hit a new low on a whopping 6400 shares. Similar deal for CPLP. Both yielding over 10% now. I don't think the bulls on this board are wrong, just early.; 8/25/2008 1:12 PM
Anonymous said...: You can add MMLP to the list of MLPs trading at 4 year lows (along with APL). Glory!

The bulls have been early by about 9 months...As much as owning MLPs sucks, we at least get paid to wait for a recovery.; 8/25/2008 1:14 PM
Anonymous said...: XTEX trading back at 2004 prices also. Rolling back 4 years worth of progress in a few months, what a great investment environment we are in.

The US economy is going to hell fast. FNM, FRE, LEH and now AIG are zombie companies which somehow manage to cling to survival.

Reminds me of Japan from 1991-2000.; 8/25/2008 1:17 PM
Anonymous said...: The CFO of MMLP bought 3000 shares last week.; 8/25/2008 1:19 PM
Anonymous said...: MLP's are stuck in no-growth hell here. They can continue to do organic projects, but these tend to be small add-on projects. If an MLP purchases assets or does a drop down, how will they finance it without crushing the price? They can use a bank line-of-credit, but that is only good for one year. They can't do equity, becasue they'll suffer a 15-25% price drop and bonds will cost them 400+ over treasuries.

There just seems to be no demand for MLP units right now.

My question for the community is this-How does an MLP grow without destroying current unit holders?; 8/25/2008 1:25 PM
Anonymous said...: MLPs should use excess cahsflow to buy back shares. It takes nothing to knock these things down 2 or 3%. There is no reason a 5000 or 10,000 share trade should be able to destroy a stock.

The market right now is just smoke and mirrors. There is no fundamental analysis being done. Its just day-traders-gone-wild.; 8/25/2008 1:32 PM
Anonymous said...: Today I swapped some of my ETP for ETE. I have been using the current crappy market to take advantage of opportunities to both upgrade the quality of my MLPs and to increase the proportion of my MLP portfolio which consists of GPs.

Bruce; 8/25/2008 1:35 PM
Anonymous said...: Bruce,

I think the GP's are the way to go. If the GP is yielding roughly the same as the MLP, you have to do the swap. This market makes no sense at all right now.

Mr. Pipes; 8/25/2008 1:38 PM
Anonymous said...: Robert Marcin TheStreet.com
Something Fishy
8/25/2008 11:44 AM EDT

I don't get these crazy volatile markets. It seems as if investing has evolved into day trading spikes responding to the CNBC overhyped data point of the morning. And, there is no way to game each day, ie the Kass no memory market thing.

It makes me very uneasy when "securities analysis" becomes so irrelevant. This is usually not a good sign. I am staying cautious until things start to make sense again.; 8/25/2008 1:40 PM
Anonymous said...: Any news in WES to warrant a -4.15%
move today?; 8/25/2008 1:59 PM
Anonymous said...: Mr. Pipes,

Obviously, I agree. So far, I have managed to pick up a fairly significant position in MGG at its lows (so far). Same with ETE. Because I don't want to get even more overweight in ETP than I already am, I have been offsetting my ETE purchases with ETP sales.

Thinking about some BGH, too.

Bruce; 8/25/2008 2:00 PM