MASTER LIMITED PARTNERSHIPS

Wednesday, September 17, 2008

Plains All American talks about hurricane and Lehman exposure. No material exposure to Lehman. Service also coming back on some Teppco(TPP) lines. Genesis (GEL) says no impact from hurricanes.

Stock futures selling off down 100 dow points but the energy complex remains higher.

19 comments:

Anonymous said...: The slaughter continues...

There is just no relief in sight.; 9/17/2008 9:36 AM
Anonymous said...: Does the selling of these things ever end? Every damn day I turn on the screen and its a sea of red.

I have lost a fortune in two f*cking weeks.; 9/17/2008 9:41 AM
Anonymous said...: I'm a MLP and Preferred stock investor, I'm getting killed as well.

Interestingly, none of my holdings are in companies that have colapsed.

Just eveything goes down, every day.

The shorting goes on unrelentingly.
Cox sits on his ass, with nno naked short selling rules.

I'm reminded of a Ditty from WW2.

--------------------------------

We're the battling Bastards of Baatan....

No Momma, No Poppa, No Uncle Sam.; 9/17/2008 9:51 AM
Anonymous said...: ETE is just a disaster.

It was at 28.00 2 weeks ago, now its 21.00- a 25% drop.

The GPs are just a house of horrors.; 9/17/2008 10:03 AM
Anonymous said...: CEP -5.00% and investor relations can only discuss LEH exposure.; 9/17/2008 10:04 AM
Anonymous said...: Volumes, except for ETE, are pretty light so far today.

Its amazing that every MLP comes out and lets us know that everything is back to normal after Ike. How about if just one of these blowhards spoke about the market carnage?; 9/17/2008 10:12 AM
Anonymous said...: There was a report of the SEC instituting new anti-naked shorting rules tommorrow.

I wonder if the SEC did it 4 weeks ago, perhaps the GSEs, AIG, and Lehman would have a better chance to survive.

In any case, if the rules against naked shorting will be enforced, institutions
9 IS Fidelity, Vanguard )will be able to force shorts to cover by removing shares that were shortable and placing them in a cash account.

Suddenly shorts who were covered, will find them naked, and forced to cover.; 9/17/2008 10:23 AM
Anonymous said...: The SEC is a colossal joke. They just have no understanding of markets. They needed to rein the naked short sellers in a year ago. The damage is done, as usual they react to a crisis rather than prevent it.; 9/17/2008 10:29 AM
Anonymous said...: "The SEC is a colossal joke."

Agreed. If they had acted Aug 15, instead of Sept 18... then AIG + LEH might have survived.

The confidence that has been killed might take years to build again.; 9/17/2008 10:35 AM
Anonymous said...: IMHO this started when the uptick rule was discarded. That and naked shorts is ruination.; 9/17/2008 10:44 AM
Anonymous said...: The SEC has exacerbated the problem by delaying action against naked short sellers.

Now Market Confidence is distroyed.

3 weeks ago we had a reasonable hope that things would slowly work themselves out.

Now the GSEs are gone, LEH is Gone, AIG is Gone, and the Fed's balance sheet is stressed.

Fear is not what's moving markets, Terror that the whole financial system is colapsing is.; 9/17/2008 11:06 AM
Anonymous said...: It will take years for confidence to be restored. Why would anyone buy in the current environment?

Provided that distributions are maintained, in a few years we'll recover our losses. Hoping for a quick recovery at this point is unrealistic.

I have been stung by how quickly MLPs fell apart. I underestimated the amount of levered players who entered the sector. Until every one of these reckless fiends is wiped out it will be a tough slog.; 9/17/2008 11:11 AM
Anonymous said...: Short selling and failure to deliver are two different issues, which are getting inappropriately smashed together here.
I certainly have no problem with short selling. I do have a major problem with failure to deliver because it undermines supply and demand. It's been a major cause of market instability in the last two years.

Alan Farley thestreet.com; 9/17/2008 11:14 AM
Anonymous said...: I live in suburban Houston and have been out of power… and out of touch… since Ike blew through here early Saturday morning. My electricity was just restored this morning so I was able to logon to check my accounts. Now that I can see the damage, I think I’m going to call the power company to see if they can disconnect me again.

Listen, my MLP holdings are as disseminated as are the rest of you, but this is a classic overreaction to the deleveraging going on in the financial sector coupled with investor misunderstanding about MLPs as an asset class, to wit the linkage investors assume about the class and the commodities with which they are associated. It won’t last forever but it isn’t over yet. AIG was a big surprise; at least it was to moi.

There will be more unhappy surprises before this ghost ship turns around. In the meantime, I’m buying MLPs with both hands. MLPs are a screaming buy. Isn’t that obvious?

Lee; 9/17/2008 11:23 AM
Anonymous said...: MLPs are a screaming buy. Isn’t that obvious?

Lee

We have been saying that since January and we've lost our asses.; 9/17/2008 11:31 AM
Anonymous said...: The real issue here is not if MLPs or other assets are screaming buys or not.

This issue is if we are headed for a systemic colapse or not.

For the first time in my 40 years of investing, I fear that a systemic colapse is a real possibility,; 9/17/2008 11:47 AM
Anonymous said...: To anonymous 11:11,

"I underestimated the amount of levered players who entered the sector. Until every one of these reckless fiends is wiped out it will be a tough slog."

You do realize the MLPs themselves are leveraged players?; 9/17/2008 11:47 AM
Anonymous said...: It would be helpful if all the "anonymous" posters on this blog were required to identify themselves in some fashion. It's too hard to respond to a particular post because everyone is anonymous.

That said, to the person who wrote "we have been saying that since January and we've lost our asses" in response to my post, I hope its obvious that I am not predicting an end to the blood-letting anytime soon. Yes, it's been a brutal year and, no, it isn't over yet. But at these prices, MLPs are simply too good to ignore.

Momentum investors would prefer to wait for a stock that's fallen to, say, $50 descend to $25 and then rebound to $75 before committing. I'd rather buy at $50 and keep buying all the way down (assuming sound fundamentals) because by the time the momentum investor is onboard, I'll already have a healthy profit. That's how I view MLPs right now.

Lee; 9/17/2008 12:11 PM
Anonymous said...: Lee,

I think we now have a binary sitiuation.

If the credit crisis prevents access to bank financing, then a even a good company must engage in highly dilutive equity financing.
If any debt needs to be rolled over and markets aren't working, or a companies revolver is pulled with a balance to be repaid.... then a company must sell assets or equity fiancing.

Then things will get much worse.

If the credit crisis eases, then many stocks and MLPs are screaming bargains at this level.

The key now is the price action of the major banks.

HS; 9/17/2008 1:02 PM