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Tuesday, January 11, 2011


This morning we have a Goldman Sachs call on diversified pipelines. It is downgrading the group due to valuation, relative outperformance, and a less positive view on natural gas. Specifically it downgrades Sunoco Logistics(SXL) to neutral from the conviction buy list. And it downgrades TC Pipelines (TCLP) to a sell. Both stocks have had great runs. It is also raising Buckeye Partners (BPL) to a buy and putting it on the conviction buy list. It is also upgrading Plains All Amercian (PAA) to neutral from sell. And its raising El Paso Partners (EPB) to buy from neutral. It remains neutral on MLPS as a whole. So there you have it folks. Goldman who always has everything figured out (and makes tons of money) has mlps all figured out.

Both charts of Goldman's new buy pics look okay. EPB did a stock offering a month ago and that's why you see that gap on the chart. Buckeye looks like its building another base as it prepares for at least a move back to the recent high. Market permitting of course.

Also in the news this morning is Markwest Partners (MWE) who is coming to the well with a public offering of 3 million shares. The news came out last night and the stock is down 1 and change this morning on the dilution. Btw no premarket trades on the other issues mentioned at least so far.

The market is starting the day on a firm tone with futures up about 5 S&P points. Crude is higher and nat gas is flat. The dollar is flat to a touch lower against the major currencies and rates are starting the day higher ahead of the first of three auctions. Today its the 3 year which normally goes well.

Another snowstorm is looming for the northeast and it looks like another foot plus event. So that means getting ready for it this morning. The liquor cabinet is empty!!!

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