Baird says buy MLPs now after seasonal weakness, upgrades PAA


MLPs have recently underperformed the broader market, consistent with historical seasonal patterns of weakness in November on tax-related sales, and Baird says it would buy now (Briefing.com).

The seasonal performance trend provides an attractive tactical entry point on the group, Baird believes, driving upgrades of Plains All American (PAA), Crestwood Midstream (CMLP), Breitburn Energy (BBEP) and Summit Midstream (SMLP) to Outperform.

The firm also thinks Atlas Energy (ATLS), Atlas Resource (ARP), Legacy Reserves (LGCY) and Vanguard Natural (VNR) look relatively attractive and ripe for potential upgrades in the event of further weakness through Thanksgiving.

From other sites
Comments (4)
  • caapt727
    , contributor
    Comments (44) | Send Message
     
    After looking at the article, I looked at the yahoo page for ATLS and saw that they lost $1.23 per share and ARP lost $1.15 per share. What is going to turn money loosing companies around so quickly?
    21 Nov 2013, 03:56 PM Reply Like
  • surfgeezer
    , contributor
    Comments (9908) | Send Message
     
    MLP's don't use earnings. Look at FFO and what they are getting the Funds from as well as building.
    21 Nov 2013, 06:38 PM Reply Like
  • Pablomike
    , contributor
    Comments (4409) | Send Message
     
    Baird downgraded BBEP Oct 22nd "seasonal weakness". The time to buy was on the offering low $18s not over $19 now.
    22 Nov 2013, 09:40 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (6741) | Send Message
     
    What about (RNF), (CVRR), and (TNH)? After big fall, I think (TNH) hit bottom. I also see brighter futures ahead for (RNF) and (CVRR) as they are nearing or done fixing their plants.
    24 Nov 2013, 09:07 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs