Its Monday morning and we begin with a piece of corporate news as Holly Partners (HEP) reports earnigns that were nicely higher. Stock could be a mover today. We are also seeing the last big round of ex-distributions today including Atlas Pipeline Partners (APL), Duke Midstream (DPM) Williams Partners (WPZ) and a few others but all the heavy weights in the MLP index went ex-distribution last week so there should be only minimal impact today. No action so far with regards to upgrades or downgrades.
The MLP index weekly chart still shows no sign of a top and is in re-accelleration mode. Now at some point this thing is going to plateau and we will enter another basing phase where we spent most of 2006. Plus we are getting a bit stretched with regards to yield compression as average yields in MLPs are in the low 6 range. But the perception right now is that distributions will continue to rise in a flat rate enviornment.
Holly Partners has been in a trading range for nearly 2 years and has shown signs lately of joing the party. Today's earnigns news could be a stock mover and propel this one out of the base.
Propane MLP Inergy has also been pretty much moving sideways but it looks like this one also may be starting a new upleg.
Last year"s stellar winner Crosstex (XTXI) which is the GP of Crosstex LP (XTEX) has been quiet for awhile but the chart may be telling us that a new upleg may be starting. The only problem here is that it had such a fantastic run from 10 to 30 that it might be a stretch to ask for a repeat performance. Still the chart looks positive here.
The energy complex is higher this moring especially natural gas which is up 36 cents and nearing 8 bucks. So we wait for the open and see what today brings us.
joseph cioffi's Source Page - Associated Content
2 comments:
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