Cramer's Stop Trading! Stop Selling Master Limited Partnerships (5/4/11)

Includes: CLH, EPD, GTLS, KMP
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Program, Wednesday May 4.

Enterprise Products Partners (NYSE:EPD), Kinder Morgan Partners (NYSE:KMP), Chart Industries (NASDAQ:GTLS), Clean Harbors (NYSE:CLH)

Master Limited Partnerships, such as Enterprise Products Partners (EPD) and Kinder Morgan Partners (KMP) are being sold off amid worries that the tax code might change, and in the process alter the way MLPs are taxed, by granting them less of a REIT-like tax structure. Fears are MLPs will be forced to adopt a tax structure more similar to regular corporations. Cramer says this has almost no chance of happening, but the sellers will not get around to realizing this until Friday.

No one seems to be making money on natural gas except cleanup and export plays like Chart Industries (GTLS) and Clean Harbors (CLH), which should continue to outperform drillers.


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