MASTER LIMITED PARTNERSHIPS

Tuesday, September 09, 2008

Down almost 10 points on the mlp index or 4% which is an enormous move for this group. Amazing really; you can't help but drop your jaw at this. For all the suffering..for all the talk of yield support...and so many other arguements...none of them hold water. We are seeing a wholesale liquidation. Constellation with a 9 handle! Atlas Pipeline at 29 and looking at a 4 dollar distribution annual going foward. We have reach the point of everything being nonsensical. I frankly am astounded.

Lehman is in a death spiral right now under 8 bucks and just spinning out of control.

I got into mlps to get away from tech and everything else. I wanted some stability. I didn't want a dot com stock again.

Bear markets destroy and destroy everything and everyone.

9 comments:

Anonymous said...: We need a diversion ... hey, Steve Jobs today unveiled the 'funnest' iPod ever!; 9/09/2008 3:21 PM
Anonymous said...: There is simply no fundimental analysis that works in this market.

I can understand why E+P MLPS would be hurt by falling oil and gas prices.

I can't understand why pipeline companies ( tolltakers ) wouldn't be helped by falling energy prices ( less risk of demand destruction when there is lower energy prices).; 9/09/2008 4:00 PM
Anonymous said...: We are experiencing the downside of inefficiency in the marketplace. If none of us held a position in these stocks, we would all be kids in a penny candy store trying to decide what to buy. At some point, this will pass, and we will be looking for cheap candy and wondering what happened to it. Those who buy here will be happy sooner than those who sold here.

Steve; 9/09/2008 4:24 PM
Anonymous said...: Pisani: Margin calls the source of Commodity + (MLP( I added MLPs not Bob Pisani) )selloff?

1 hour ago
Commodity Sell-Off? Where Does It End?
Posted By:Bob Pisani ( I'm not Bob, I just cut and pasted his post )

In the last 7 trading sessions, commodity stocks have been in a free-fall. Look at what has happened to these big names, most of which hit historic highs in June or July:

Nucor: 52-week low on heavy volume (55% off high)

Potash: 6 month low on heavy volume (41% from historic high)

Freeport-McMoran: 52-week low on heavy volume (47% from historic high)

Valero: 3 year low on heavy volume, (59% from historic high)

Massey Energy: 5 month low on heavy volume (56% from historic high)

This is more than just normal trading, there is clearly margin calls of some sort going on that is leading to liquidation of positions. Aside from the uncertainties in financials, answering the question, "When does the commodity stock selloff end?" is the most important question on the Street.; 9/09/2008 4:36 PM
Anonymous said...: Well said, Steve.

"Bull markets are born on pessimism, grow on skepticism, mature on optimism. The time of maximum pessism is the best time to buy, and the time of maximum optimism is the best time to sell."
-John Templeton, February 1994

As for me, every time I hear about catching falling knives, I reach for my checkbook.

Lee; 9/09/2008 4:38 PM
Anonymous said...: Great.

Regency Energy Partners Announces Common Units Offering By HM TXRG LP
Tuesday September 9, 4:37 pm ET

DALLAS--(BUSINESS WIRE)--Regency Energy Partners LP (Nasdaq: RGNC - News) announced today that HM TXRG LP, an affiliate of Hicks, Muse, Tate & Furst Equity Fund V, L.P. (“Fund V”), is selling 7,100,000 common units representing limited partner interests in Regency. Regency Acquisition LP, an affiliate of Fund V, has granted the underwriters a 30-day option to purchase up to an additional 1,048,672 common units on the same terms and conditions if the underwriters sell more than 7,100,000 common units in this offering. Regency will not receive any proceeds from this offering. The common units are listed on the NASDAQ Global Select Market under the symbol “RGNC; 9/09/2008 5:09 PM
Anonymous said...: What the f*ck are these guys doing on RGNC? That is just stupid...The market doesn't need more supply.; 9/09/2008 9:39 PM
Anonymous said...: I think some of the decline must be related to Lehman unwinding some of its positions. They are pre-announcing earnings on Wed. morning at 7:30 and they needed to find as much capital as they could.; 9/09/2008 10:55 PM
Anonymous said...: Joe--I am in the same boat, tho less committed to MLPs than you. I took this route in the aftermath of the dot com bust -- looking not to repeat my old mistakes.

As you say, bear mkts destroy -- irrationally. This is the problem that the need to liquidate causes. Maybe things will improve (?!) after LEH folds? (If that doesn't sink our positions in some of the MLPs); 9/11/2008 10:21 AM