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Friday, November 07, 2008

Atlas Pipeline Partners (APL) is down nearly 3 dollars as we move through the last hour. Also seeing big percentages losses are DCP Midstream (DPM) Constellation Partners (CEP) and Calumet (CLMT). It has the feel of an unwind in some cases....or perhaps the idea that distribution cuts may be coming down the road if business conditions do not improve.


Anonymous said...

OK, Thought I'd submit this comment again as I didn't get any input. Maybe it is too basic for this group. If so, I'll move on. Newbie here again. Considering a buy of APL. It's taking a big hit today (dn 11%). Would be interested in a summary of where you folks are on this stock. Is it just too risky or am I missing a real opportunity here to earn a high return?

Any input you have would be appreciated.

Thanks, Rick

joewxman said...

it isn't that your question is basic...its that you are asking one of those dicey questions that no one wants to get wrong!

As per APL there are issues here and the stock has been falling from a Citigroup anal-ist downgrade to sell..that took the stock to 15 last was over 20 yesterday on earnings and the company hiring ubs to figure out a way to maximize value..and then back below 16 today...not sure why.

We're beginning to see distribution cuts appear on mlps that yielded above 20%. Crosstex last week...Constellation Energy Partners hinted at one today...and DCP Midstream said their distribution coverage was well below 1x. Add the horrible market conditions and i have to say imho its a dice roll in here. I am long APL and AHD.

Factors for next year will be the price of oil. If it falls below 60 and stays there for a long time..the citi analist says the distribution may need to be cut.

Its an ugly time out there.

fullplate8 said...

APL is a bargain at these prices, even if the distribution is cut a bit. I purchased it for the first time this week. Two purchases were before the ex-div date ($16.20 & $17.90) and one about an hour before the close on Friday @ $15.56. It's a solid company that is looking at strategic alternatives to improve shareholder value. Yous should listen to the earning's conference call.