MASTER LIMITED PARTNERSHIPS

Monday, November 17, 2008

Lunch time approaches and we have a 3 point loss on the mlp index and a 160 point loss on the dow. The dow is off its lows of the day.

Hiland Partners (HLND) is circling the drain today down another dollar and change. This once 60 dollar mlp now sits with a 12 handle! At least the Atlas family (APL,AHD) and Markwest (MWE) along with the Crosstex's (XTEX,XTXI) all flat to even a little higher so at least they are hanging on along the sides of the toilet bowl. Enterprise (EPD) Kinder Morgan (KMP) and Penn Virginia Holdings (PVG) are all down 1 point or more.

A few small winners like Martin Midstream (MMP) Buckeye Holdings (BGH) and a couple of others but nothing that really stands out. Inergy Holdings (NRGP) is up 1 and some change on no news and low volume.

Just got a form 4 sec filing from Hiland Holdings (HPGP) with a 2500 share insider buy. Insider buys carry no weight in an enviornment like this.

3 comments:

jcarroll1948 said...: Joe. Admittedly, 2500 shares is a small purchase; but, I have always heard the only reason insiders ever buy is that they think the stock is going up. Why do you say the 2500 share insider purchase is meaningless? Thanks, JCarr; 11/17/2008 2:07 PM
joewxman said...: insiders have been buying on and off for months in this group. So they've been way early and way wrong.

I guess the only thing we can derive right now from active insider purchases is that the company insiders think they will have a job tomorrow. Nothing much beyond that!; 11/17/2008 3:10 PM
jcarroll1948 said...: Joe. Thanks for the response. Here is a link to a similar discussion at Bloomberg:
http://www.bloomberg.com/apps/news?pid=20601110&sid=aLCAhR7E5RJE
Basically, the Bloomberg article makes the point that the insiders who bought in Oct were overconfident in their own companies; that is to say the companies looked better from the inside looking out than from the outside looking in. Time will tell.; 11/17/2008 4:42 PM