MONDAY MORNING AND

THE WORLD HASN'T ENDED!
.....YET!



The climax awaits!

Friday looked like we are going straight to the abyss and we managed to avoid it. Now we have another sharply down open which will take us to the lows of 2 weeks ago rather quickly so we are getting that retest this morning. I continue to hope we can have that one big mega-flush and if it comes i'll be waiting. For those of you buying into this, in my view, one should ladder orders and even put in a few "silly" bids, say 5 points or more below the market...and see if you get lucky.

Some earnings out this morning as Alliance Resource Partners (ARLP) puts up numbers and affirms guidance. The company calls its results "solid" which probably won't mean much in this mess. On the other hand note that while the broad market has moved back to its lows MLPS remain solidly above those lows. Now it could be due to the thawing in the credit markets however small or it could be due to the fact that ex-distribuion dates are rapidly approaching so a big distribution is going to be paid..supporting prices at least until the ex-distribution date. Earnings out this morning also from Boardwalk Partners (BWP) which look okay on the surface. But as a sign of the times note this quote.

To date the expansion projects have been financed with a combination of equity and debt issuances, borrowings under the Partnership’s $1.0 billion revolving credit facility and cash from operations. In October 2008, the Partnership borrowed the remaining available capacity under the revolving credit facility, which increased total borrowings to $958 million, reflecting the failure of a Lehman Brothers’ affiliate to fund its portion of those borrowings. In addition, to complete the expansion projects, it is anticipated that as much as $1.0 billion in additional equity will be required and that these funds will be raised by issuing limited partnership units. In light of the ongoing turmoil in the capital markets, the Partnership’s largest unitholder, Loews Corporation, has advised the Partnership that it is willing to provide the required equity capital if external funds are not available on acceptable terms.


I wonder if these companies would even be able to do an offering of units in this mess. There hasn't been an ipo done in many weeks. Who is going to want to take units. So it pays to have a sugar daddy!

Nothing on the upgrade downgrade list Crude touched 59 bucks overnight and remain under pressure. Stock futures as we said earlier are sharply lower but at least its not limit down. Get set for another rocky day. And remember...if you have to or want to buy in this enviornment its best to ladder your way in.