I aim small. We've had the occasional back to back up days but you have to go back to May and early June to find 3 up days in a row. Chart is hideous. But the tailwinds this morning are rising energy and the headwinds are the falling market. So we know which one we'll follow today.
Earnings news this morning from Constellation Partners (CEP) which says they will keep the distribution the same and guide to the low end of the guidance range. Stock is actually bid up in the pre market. Copano (CPNO) which i always like to think of it as that italian gas company in Texas reported earnings last night. They look pretty good and same for Plains All American (PAA). Linn Energy (LINE) which are never simple must be okay because the stock is trading up in the pre market. Record results and a 13 cent beat.
Also this morning we have the Williams twins (WMZ,WPZ), Penn Virginia Holdings (PVG). Spectra Energy Partners (SEP), Suburban Propane (SPH) and Global Partners (GLP).
No upgrades or downgrades. The open and the day await us. Glory!
joseph cioffi's Source Page - Associated Content
10 comments:
CEP results were very poor. Distribution cut is likely by next quarter.
OK shorty-thanks for the pearls of wisdom on CEP...
Lessons from an MLP investor.
We have learned the following:
-Distribution increases do not lead to higher MLP prices.
-Earnings increases do not lead to higher MLP prices.
-Higher crude or natural gas prices do not lead to higher MLP prices.
-Large up moves in the broad stock market do not lead to higher MLP prices.
-Positive future earnings and distrubution guidance does not lead to higher MLP prices.
Dear "MLP Investor:"
The "lessons" you have learned have NOTHING to do with MLPs. They relate to worldwide financial upheavals and the resulting bear market.
On a LONG-TERM basis the following are true:
-Distribution increases WILL lead to higher MLP prices.
-Earnings increases WILL lead to higher MLP prices.
-Higher crude or natural gas prices WILL lead to higher MLP prices.
-Positive future earnings and distrubution guidance WILL lead to higher MLP prices.
One day we will all look back at today's market and have but a single regret: That we did not buy more while MLP's were on sale.
Keep the faith.
Bruce Sherman
Oakland, Oregon
Well said, Bruce!
Lee
Bruce- MLP's are ALWAYS on sale. Buy and hold is a losers strategy, you tie up your capital and wait (hope) to recover the 20%+ loss that you have suffered thus far. Thats wonderful.
Bruce: It seems like that "one day" keeps getting pushed further and further into the future. As investors continue to lose money, they will get frustrated and give up on the asset class. I think we will continue to see an abandonment of MLP's. All the signs you point out are there, but why is it that no one is buying?
Yields have gone up 300 bps since last summer, prices have some down to 3 year lows, we are yieldsing 500-600 bps over the 10yr and still there is NO interest in buying. What is the catalyst that you see for a move up?
Fed Up
" Buy and hold is a losers strategy"
NEWSFLASH: We are in a bear market.
In a bear market, virtually every strategy is a "losers (sic) strategy."
Get used to it.
Eventually, the market will bottom, fear will recede and MLP unit prices will recover. You have a choice: hold on, collect your distributions (and quit whining) or sell your MLPs and move on.
Bruce
The catalyst is credit. You tell me when the blood will stop running in the credit markets and I'll tell you when MLPs will turn.
But Bruce is right. Until then, we are in a bear market and MLPs, along with almost all other sectors, are paying the price for excesive American comsumption.
But, this won't last forever. And when the worm turns, I have no doubt MLPs will make up for lost time. But nobody knows when that will be. In the meantime, kick back, collect the distribution checks, and enjoy the day.
"CEP results were very poor. Distribution cut is likely by next quarter."
The company in their press release has already recommended the same distribution for next quarter,
Read the press release.
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