MASTER LIMITED PARTNERSHIPS

Wednesday, September 17, 2008

The MLP index is down 1 point and the dow is coming well off its high up just 60 points now. Natural gas is down hard on bearish weekly numbers. Nothing is working here. This could lead to another real mess this afternoon. Goldman is down 8 and Morgan Stanley is down 2. This does not look good.

Constellation Energy Partners (CEP) is up nearly 1 dollar as Warren Buffet's company comes to the rescue of Constellation (CEG) and therefore he gets our stake. What does this mean??? Even CEP can't ignore the Warren influence.

While i type the mlp index is down 1.50 and sinking rapidly. The odds of 190-200 on the mlp index is increasing. What's another 10% anyway?

16 comments:

Anonymous said...: Looks like the shorts are going to try and break MS and GS. This has been like shoting fish in a barrel and they won't give up until they suffer a reversal.

Market breaking down again...; 9/18/2008 11:12 AM
Anonymous said...: Some day soon, we will have a vicious rally which will destroy the shorts. Until then its gut check time. I have been buying a little down here. Really nothing to lose. At 10% or greater yield, you recover lost principal in a short period of time. The risk/reward is favorable.

This is a panic, it has nothing to do with the operaional performance of the MLPs themselves.

Bruce has been saying for weeks that someday we'll look back and wish we bought with both hands. I agree with that. Can we be wrong, of course.; 9/18/2008 11:23 AM
Anonymous said...: MWE is a joke. Cmon people it cannot be this bad out there. Did we stop using natural gas and crude oil all of a sudden? Everyone needs to take a deep breath.; 9/18/2008 11:24 AM
Anonymous said...: We shall see how strong the new naked shorting rules are.

The rally may begin when large institutions like Fidelity, and Vanguard remove their shares from pools of stock available for shorting and into a cash account.

Those shorts who thought they had borrowed shares, will find themselves suddenly naked and forced to cover. At the same time these institutions will start buying.

HS; 9/18/2008 11:29 AM
Anonymous said...: "MWE is a joke. Cmon people it cannot be this bad out there. Did we stop using natural gas and crude oil all of a sudden? Everyone needs to take a deep breath."

MWE is a great company with great management, but every company with debt or a revolver that needs to be renewed is suspect.; 9/18/2008 11:50 AM
Anonymous said...: "MWE is a great company with great management, but every company with debt or a revolver that needs to be renewed is suspect."

Interestingly, my understanding is that MWE has prefunded all of its '08 capex. If necessary, they could fund all of their planned '09 capex from excess cash flow and their existing credit lines. This--coupled with their lower cost of capital--puts them, IMO, in an excellent position to weather the storm.

I am continuing to accumulate MWE, CPNO and ETE at these levels--although I do suspect that we have not yet seen the ultimate bottom.

Bruce; 9/18/2008 12:03 PM
Anonymous said...: The new CEO of AIG saud that Common dividends would likely be suspended.

I wonder if AIG's preferreds will be paid, and perhaps the GSE preferreds elimination may be reconsidered ( to strengthen the banks that still hold these securities. )

McCain said he would fire Cox; 9/18/2008 12:22 PM
Anonymous said...: Anyone watching ETP?

U-N-B-E-L-I-E-V-A-B-L-E.

Bruce; 9/18/2008 12:38 PM
Anonymous said...: Banks still getting killed.

GS -27

ms -6
c -1.01

HS; 9/18/2008 12:39 PM
Anonymous said...: Sept. 18 (Bloomberg) -- Republican presidential nominee John McCain said he would fire Securities and Exchange Commission Chairman Christopher Cox if he were president.

``The chairman of the SEC serves at the appointment of the president and in my view has betrayed the public's trust,'' McCain said at a rally in Iowa. ``If I were president today, I would fire him.''

HS; 9/18/2008 12:50 PM
Anonymous said...: This may have caused sell off today?

Putnam liquidates money market fund

By Sam Mamudi
Last update: 12:30 p.m. EDT Sept. 18, 2008Comments: 7
NEW YORK (MarketWatch) -- A run on a money market fund managed by Putnam Investments, a subsidiary of Great West Lifeco Inc. (GWLI.F:great west lifeco inc com
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Last: 30.25+0.77+2.59%

12:00am 09/12/2008

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GWLI.F 30.25, +0.77, +2.6%) has forced the company to liquidate the institutional fund. Putnam said that "significant redemption pressure" on Wednesday forced it to close the $15 billion Putnam Prime Money Market Fund (PPMXX:PPMXX
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PPMXX, , ) . "Constraints on liquidity in money market instruments created the risk that in order to process redemptions, the fund would realize losses in selling its portfolio securities," said Putnam in a statement. "The Trustees determined to close the fund to ensure equitable treatment of all fund shareholders." The statement did not say when shareholders will receive their money, nor did it say whether the payouts would maintain the fund's $1 a share net asset value

HS; 9/18/2008 12:53 PM
Anonymous said...: ETP down 15 pct on NO news ???; 9/18/2008 12:55 PM
Anonymous said...: The UK just placed a total ban on short selling until January.

Why won't the SEC even restore the uptick rule?

Bruce; 9/18/2008 1:16 PM
Anonymous said...: The U.K. just banned short selling on a 'temporary' basis. That's all kinds of short selling.; 9/18/2008 1:19 PM
Anonymous said...: Bruce:

If it could happen in the UK it could happen here, adding risk to the short side.

Maybe that's why we reversed.

We still have margin clerks selling until 2.00, maybe we can rally after then.

HS; 9/18/2008 1:20 PM
Anonymous said...: Interesting about McCain's saying he would fire Cris Cox over uptick rule.

If COX institutes a new version of the uptick rule tomorrow, McCain can claim he is acting Presidental.

After all a presidental candidate moved policy.; 9/18/2008 1:44 PM