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Wednesday, April 20, 2011

ALL TIME HIGHS???



MLPS are poised for a big move this morning along with the entire stock market. Earnings news last night and this morning have been very good and well above expectations. Companies are raising their outlooks. So Monday's drop on the S&P "warning" becomes nothing more than statistical noise as the dow futures are up close to 150 this morning.


Both charts show that the uptrends remain essentially intact. Support continues to hold and markets are behaving pretty much the way they do when bulls are in charge. Rallies are runaway and selloffs are sharp and relatively shallow and everyone is afraid to buy.

Kinder Morgan (KMP) will announce its earnings after the close today. Crosstex Energy (XTEX) hikes its payout to 29 cents and on the corporation's common stock (XTXI) the payout goes to 9 cents a share. Thats a nice 12% hike from last quarter. Stocks are bid up this morning. Targa Natural Resources (NGLS) is doing a public offering of stock. It was priced this morning at 31.73. Stock is already trading a dollar above that.

Take a look at this interview transcript of Credit Suisse Analyst Yves Siegel who explains quite well why MLPS are a good investment in this enviornment we're in. He also addresses any Washington tax threat on MLPS and why it will go nowhere. Its a good point to realize that these companies would not generate much tax revenue and since they are the infrastructure builders, why would you want to go after them since they are so vital for the US energy futures.

Strong open coming shortly and then lets see how much followthrough comes in.

2 comments:

Rhona said...

I believe that its Targa Resources Corp (not NGLS ) that is doing the secondary. Meanwhile its UP $1.5+ which is unusual.

joewxman said...

u r correct. thanks