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Friday, December 30, 2011


It appears that unless we get a complete meltdown today (which appears highly unlikely) mlps will breakout above 390 and we will close the year at new all time highs. The index started the year at 365 so a 390 close gives us a 25 point gain or about 7% and thats without distritubutions. So your 2011 total return was probably north of 13%! During a year where the market essentially went nowhere, this was a banner performance. EV Partners(EVEP) went from 40 to 65 in this stretch and Sunoco Logistics (SXL) adjusting for a 3 for 1 split went from 26 to 38. Also not too shabby. Atlas Pipeline Partners (APL) was another winner up from 22 to 36.
Plains All American (PAA) is the latest mlp to go parabolic and this happened after it announced its purchase of assets that put it squarely in the nat gas export market. Nat gas is at 3.00 on its way to being free. Since we don't seem to realize its value here in the United States we are sending it elsewhere. Who cares if natgas goes to zero, since you still have to pay to ship it. Plains will have the pipes so if you want it, you got to pay the toll.

This morning looks like a slightly lower open as books get squared for year end. The 10 year is at 1.89. The Euro is trying to hold 1.29. Nat gas is at 3 bucks and as i said earlier on its way to zero. Crude is down and gold is bouncing after several days of heavy selling.

1 comment:

Josef said...

"total return ... north of 13%".. Your right Joe, my total return was 14%. I'm 100 % in MLP's. Happy Holiday.