CT Programmer

Attractive Outlook for MLPs Following September Lows

jamookey... I bought MOS today. When I first started watching them in January (just to pace YARIY which I owned at the time) , they were at $135. Now, they're at $42! This after they "disappointed" Wall Street by coming in a little short on earnings (God forbid you don't come in exactly at what these number crunchers think --- despite the fact that they all missed this huge financial mess and recession). Forget that Mosaic doubled their profits over last year. Forget that they have a fwd PE less than 3 (you'd think they were going into bankruptcy at that level). It's just knee-jerking. And I say "thank you" to whoever panicked and sold me their shares at such a lovely price.

Attractive Outlook for MLPs Following September Lows

We're in the midst of a panicked sell-off. No one thinks anything is making any money anymore, so they're pulling out and sitting on cash. These pipeline companies provide solid dividends while you wait, and their stock prices will come back up. Are we really using significantly less gas and oil? No. And it has to be shipped from point A to point B, just like it always has to, regardless of the price of the oil or gas itself. I find it ironic that on a day like today when lot's of good companies are down 10% or more, EEP is only down 1.5% --- and that's with getting hit with a hefty fine regarding the pipeline explosion last fall. I have noticed that OKS seems to be slipping more over the last few weeks than EEP has. Is there any news regarding them and possibly debt problems? Long EEP and OKS.

Why Buy MLPs?

Thanks for the info everyone. My line 20 of my K-1 is zero, but I had only held it for a month in 2007 (originally bought in Dec 2007) and hadn't received any dividends yet. Does the UBTI accumulate over the years, or is there a $1,000 limit per year for all your MLP's combined? Also, about how many years does it usually take before your cost basis falls to zero? And, if I'm reading all this correctly it sounds like if your cost basis goes to zero (even if in an IRA), when you actually sell you're on the hook for taxes on the full price when you sell, correct?

Why Buy MLPs?

What exactly do you mean by "making them friendly for ... retirement accounts"? I added both EEP and OKS in my IRA (a SIMPLE plan) last year. I did receive the K-1 come tax time, but since its in my retirement account there wouldn't be any taxes due anyway. Will there be issues down the road, maybe when I start withdrawing from it when I retire? I bought them at the time because they were good investments with a good dividend, even if I'm maybe not getting all the tax benefits.