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Wednesday, June 08, 2011

After running up 2 points plus the mlp index is now down nearly 2 and at the lows of the day. Rallies continue to be sold into at every opportunity and it looks like were on our way to 6 down days in a row. The dow was is off a few points as we head into lunch with some strength in energy stocks still holding on.

Constellation Energy Partners (CEP) is one of the few mlps not to recover off its 2008-09 massacre low thanks to no prospects of a distribution coming back but the news of debt reduction has this one up 15 cents or 6% on the day and among the few winners. Oneok LP (OKS) is up also on the news of a 2 for 1 split. Otherwise its down for most of the group with TC Pipelines (TCLP) down a dollar as the biggest loser.


Steve H said...

NKA looks like it being dumped,

Max said...

I took the liberty of posting the following from a Morningstar site that I follow:

One major theme we took from the National Association of Publicly Traded Partnerships' annual MLP conference this week is that the NAPTP, several MLP executives, and a panel of lawyers all agree that changes to MLP tax laws are highly unlikely, particularly in the next year and a half. One reason is that the highly controversial proposal lumps in all pass-through entities with gross receipts greater than $50 million, including MLPs and a host of law and accounting firms, and this is a broad enough group to draw serious opposition. A Republican House opposes reforms that would raise taxes on any business, and the Senate would likely show strong opposition too, according to Mary Lyman of the NAPTP. We agree that any change in the near term is unlikely. However, several of the presenters and executives conceded that discussions may be more serious than the latest 2005 proposal to simplify the tax code by having all entities pay the same level of taxes. While this proposal quickly withered under the Bush administration, today's deficits and weaker federal balance sheet call for less spending and higher taxes. Still, we believe the NAPTP's lobbying and education efforts, the relatively small size of the MLP space and potential incremental tax revenues raised, and the need for continued infrastructure investment will stave off the tax question once again.