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  • Master Limited Partnerships: Pipe Dreams or Shark Jumpers? [View article]
    The crash of 2008 was a market wide event affecting all classes of equities and not the result of an over bought MLP market which the author alludes to. Even so, as examples of "well known and managed MLPs" at the nadir March 09. 2009 Kinder Morgan Partners (KMP) closed at 41.15 and was paying about 10% annual yield; Enterprise Products Partners closed at 17.95 and was paying at that price an 11% yield - no "40% or higher yields". If one had bought at that time with the knowledge of the excellent underlying businesses a capital gain of 74% with KMP and 144% with EPD would be on the books in addition to the unmissed and growing dividends. As always, facts and good judgement make for profitable investments (and good reading), not hyperbole and fear.
    Feb 7, 2011. 05:16 PM | 19 Likes Like |Link to Comment
  • Kinder Morgan companies lower AH as Q2 earnings miss estimates [View news story]
    EPS of no importance with MLP structure. Distributable Cash Flow is the metric and is increased. Pleased holder.
    Jul 16, 2014. 06:33 PM | 18 Likes Like |Link to Comment
  • Has Linn Energy Finally Bottomed? [View article]
    Generally pros don't trade with stops - they are watching their positions at all times and making a judgement as to whether a downdraft in price is justified or not and then trade accordingly. Stops are for less attentive investors and simply lock in a loss whether the price drop is justified or not. Recall the "flash crash" which burned many individual investors in the transient unjustified price drop with return to usual prices a few hours later and only ashes for those stopped out. Short sellers also are quite aware of somnolent investors with their dormant stops and accordingly, judge they may be able to start the avalanche with a small push that activates the stops. It should also be noted that a stop will not guarantee a given price - the stop simply orders that the equity be sold below a given price which in a severe downdraft (such as the "flash crash") may be well below the stop price. Use stops with care and better yet, stay closely tuned in.
    Jun 18, 2013. 05:25 PM | 18 Likes Like |Link to Comment
  • Kinder Morgan profits drop, but points to growing natural gas demand [View news story]
    SA still doen't get it - EPS is not the important metric for an MLP - look at distributable cash flow (which was good).;
    Apr 16, 2014. 07:45 PM | 13 Likes Like |Link to Comment
  • Master Limited Partnerships: Pipe Dreams or Shark Jumpers? [View article]
    I do not believe that the underlying businesses of most well known and managed MLPs are going away though certainly their unit price may decrease with macro (general market) and micro (leveraged owners of MLPs forced to sell) market conditions. If the price of units were to decrease as a result of such action I further believe that in this interest rate environment which is likely to be sustained a year or more, that there is a significant population of income investors who would step in to the breach to purchase the now less expensive, higher yielding MLP units. A fall in price would be viewed as an opportunity and thus substantially soften the harshness of the price decline. MLPs most significant risk, in my view, is unpredictable governmental action which might diminish or destroy their tax advantaged treatment (as occurred to the Canadian Income Trusts in the 2006 "Halloween Massacre").
    Feb 7, 2011. 02:34 PM | 12 Likes Like |Link to Comment
  • How Low Crude Prices Could Quickly Lead To Higher Crude Oil Prices [View article]
    The price of oil is not simply a product of supply and demand but is subject to political/financial engineering by producing nations and their allies. The price will return to a "normal" range when the goals of these collaborators are perceived by them to be achieved and not before.
    Dec 30, 2014. 07:34 PM | 10 Likes Like |Link to Comment
  • Kinder Morgan picks Pemex subsidiary for Tennessee-to-Texas pipeline project [View news story]
    Haven't they heard we are not going to use oil or gas again?
    Oct 15, 2014. 11:15 AM | 10 Likes Like |Link to Comment
  • Even With A Fiscal Cliff Deal, Stocks And The U.S. Economy Will Unravel In 2013 [View article]
    Nothing new under the sun:
    "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years... The American Republic will endure, until politicians realize they can bribe the people with their own money."

    -Alexis de Tocqueville 1805-1869"
    Nov 9, 2012. 04:12 PM | 10 Likes Like |Link to Comment
  • Time To Sell Enterprise Products [View article]
    My MLPs are purchased in general as life long holdings for tax advantaged income - only to be sold if the business model appears broken to the point of threatening distributions. This point of view is encouraged by a large tax liability incurred upon sale versus no tax liability upon being passed on in an estate.
    For new money I would not purchase EPD currently as I believe EPD's valuation is currently too high - would rather consider MWE or Crestwood family as attractive new money choices. Having said that, I believe EPD is here to stay and I regard their distribution as quite safe and will continue to hold.
    May 25, 2014. 01:10 PM | 9 Likes Like |Link to Comment
  • Linn Energy, LinnCo pop higher as SEC has no further comment on filing [View news story]
    Why even report this reckless amateur's opinion - waste of time...
    Nov 1, 2013. 10:43 AM | 9 Likes Like |Link to Comment
  • 2 Monthly Dividend Stocks To Buy And 3 To Avoid [View article]
    Atlantic Power in its current evolutionary phase is primarily an asset growth story. In 2011 AT completed its acquisition of Capital Power and thereby increased its power generating capacity by more than 140%. Post merger it also purchased a 30% interest in an Idaho wind farm and a 51% interest in an Oklahoma wind farm - showing AT's post merger financial strength. Cash flows rose 94% in the fourth quarter reflecting in part the contributions of the power generating asset growth. Distributable cash flow ( DCF), not earnings per share, is the best metric to assess the financial success and dividend safety of this business. DCF rose 25% for 2011 and could not reflect the new asset contributions in full but would reflect the asset acquisition and integration costs - this gave a full 2011 dividend payout ratio of 105% but was well within managements guidance; payout ratio is guided in 2012 to be between 90 and 97%. Also, as not stated above, the dividend was increased 5.1% with the Capital Power acquisition.
    The biggest business challenge to AT is likely depressed power prices which if they persist or worsen could erode margins, but as pointed out in the article, about 75% of ATs plants are natural gas powered (thus helping margins) with the rest renewable power generation under long term contracts.
    I believe AT's current story is a good one with solid management that has been transparent and effective and accordingly I invest with them - but, differing opinions make a market.
    Mar 13, 2012. 10:39 AM | 9 Likes Like |Link to Comment
  • Rough Day for Master Limited Partnerships [View article]
    In the politics of envy, property is theft.
    No investment apart from government issued municipal bonds is safe from governmental meddling and those bonds are subject to governmental incompetence.
    May 4, 2011. 10:30 AM | 9 Likes Like |Link to Comment
  • Distribution cuts ahead for E&P-focused MLPs, Barclays warns [View news story]
    Aggregating companies with significantly different near term risk profiles.
    Feb 4, 2015. 02:49 PM | 8 Likes Like |Link to Comment
  • Avoid Linn Energy LLC And These Other MLP Value Traps [View article]
    The difficulties in forecasting "buy and sell" recommendations in the recent energy space is exemplified by Mr. Gue's recommendations in an 10/09/2014 Alert to subscribers entitled "The Names to Buy in the Energy Selloff" that included MEMP and VNR.
    Can't get them all right...
    Dec 31, 2014. 01:45 PM | 8 Likes Like |Link to Comment
  • Here Is Why I Reluctantly Added To My Investment In Linn Energy [View article]
    Again, I am surprised and disappointed that management has not commented on their expectations for operating the company in a low oil price environment. This silence can be interpreted as either a desire not to report bad news or lack of consideration for the share holders - neither of which is good. These are not ordinary times for the company and its equity which makes this silence deafening...
    Dec 10, 2014. 05:18 PM | 8 Likes Like |Link to Comment