its Veterans Day so it should be a slow day on the tape with subdued volume. If i had to guess who stayed home today it would be the buyers rather than the sellers but one never knows.
This is an early post as i have some personal stuff to take care of this morning. Nothing serious, but i will try and blog while i'm on the road. (i'll pull over...not while driving!).
At this early hour stock futures are down but not by anything catastrophic. Energy is lower as Crude oil desperately tries to hold 60 dollars and Brent is down to 57 and some change. Nat gas is off only 4 cents after yesterday's rally which really did nothing to support energy stocks or mlps. Looking for a bounce in Markwest (MWE) on its earnings last night and on indications that the distribution increases may continue in 2009 albeit at a modest pace. Also looking to see if the death by 1000 cuts continues in issues like the Atlas's (APL,AHD) Constellation (CEP) Hiland (HLND) and others. Problems continue for Quest Resources Jerry Cash..he's the guy who is accused of misusing 10 million worth of cash from the company. That stock is sitting around 4.
joseph cioffi's Source Page - Associated Content
13 comments:
Futures are down about 2% now.
I think the enormity of the issues facing the economy is sinking in now, and the fact that the bailouts are perhaps able to ease some of the pain, but they are no panacia.
AIG and the GSEs seem to be a bottomless bailout pit.
The Auto industry needs not a bailout, but a prepackaged bankruptcy in actuallity, if not in name.
It's going to be a tough 2009.
HS
General Growth Properties may fail because of credit issues. This is the nightmare senario, A company fails because they can't roll over their debt.
HS
http://www.marketwatch.com/news/story/General-Growth-shares-plunge-after/story.aspx?guid=%7BDA133BD5%2D40B5%2D4C5E%2DBB9D%2DCAC119CD9ADB%7D&dist=hplatest
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General Growth shares plunge after bankruptcy warning
By John Spence
Last update: 9:47 a.m. EST Nov. 11, 2008Comments: 1
BOSTON (MarketWatch) -- Shares of troubled mall operator General Growth Properties Inc. (GGP:General Growth Properties, Inc
News, chart, profile, more
Last: 1.37-0.70-33.82%
4:01pm 11/10/2008
GGP 1.37, -0.70, -33.8%) plunged 70% early Tuesday after the company in a filing warned it may be forced to file for bankruptcy if it can't refinance its debt. "In the event that we are unable to extend or refinance our debt or obtain additional capital on a timely basis and on acceptable terms, we will be required to take further steps to acquire the funds necessary to satisfy our short-term cash needs, including seeking legal protection from our creditors," the real estate investment trust said in a filing late Monday. "Our potential inability to address our 2008 or 2009 debt maturities in a satisfactory fashion raises substantial doubts as to our ability to continue as a going concern
Is MWE going out of business? Losing another 9% today. 10 more days until ZERO.
XTEX is yielding 30%. Does anyone really believe this is a real company. Another MLP run by liars and frauds.
MWE down an even 10% now. 21% yield! Another value trap that we have fallen into. These companies just cannot make it by drawing down credit lines. At some point they will need to do a massively dilutive equity raise. APL, NGLS, XTEX, CPNO etc all are stuck in the same snare.
Does anyone think there is a G&P that is worth buying right now? Seems like the wheels have come off.
Don't worry its just forced liquidations (oh sorry that is what we said six months ago). Its Lehman selling (whoops that was several months ago too). How about investors sick of being lied to and want out of the sector.
Anyone alive out there?
NO!
Alot of guys were buying MWE yesterday. No fresh opinions today after the earnings and another 10% drop in unit price?
I added to CPNO and MWE yesterday and today. MWE's results were far better than all of the fear mongers speculated. For long-term holders, this is when you want to accumulate--not sell.
Bruce
PS Ain't Joe gonna get a shock when he checks in and sees his "quiet market!" LOL!
It's a bloodbath for sure. It's not a matter of being lied to. The market is an aggregation of millions of individual participants. Unfortunately, every time an MLP drops by a couple more percentage points, it's the straw that breaks the camel's back for a few more investors. That's why sell-offs can seem like they are spiraling down into a bottomless pit. Once everyone gives up, that's the bottom.
Unfortunately, I haven't given up yet!
DEATH WATCH
APL has about 9 days at the current rate of descent to arrive at ZERO.
AHD has 6 days until ZERO.
But don't worry according to the quarterly earnings release, the market has it wrong and all is well with the company.
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