elliot_mllr's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/44329/comments http://seekingalpha.com/article/1448501/comments?source=feed#comment-19051641 19051641 Elliot Miller]]> Mon, 20 May 2013 20:40:10 -0400 Elliot Miller]]> http://seekingalpha.com/article/1310881/comments?source=feed#comment-19033251 19033251 It's quite a run for MMLP units, hasn't it?Did you see the Wells Fargo analysis of a few days ago? It extolls MMLP's future but feels the units are fairly valued now at a $45 handle, which is probably correct.
Elliot]]> Mon, 20 May 2013 13:00:12 -0400 It's quite a run for MMLP units, hasn't it?Did you see the Wells Fargo analysis of a few days ago? It extolls MMLP's future but feels the units are fairly valued now at a $45 handle, which is probably correct.
Elliot]]> http://seekingalpha.com/article/1300561/comments?source=feed#comment-19032911 19032911 You have another alternative, which is to buy more EPD units, thereby increasing your basis in the aggregate so that you may continue to receive tax deferred income (at least until the additional basis is consumed, after which you can buy another tranche of units).
Elliot Miller]]> Mon, 20 May 2013 12:51:57 -0400 You have another alternative, which is to buy more EPD units, thereby increasing your basis in the aggregate so that you may continue to receive tax deferred income (at least until the additional basis is consumed, after which you can buy another tranche of units).
Elliot Miller]]> http://seekingalpha.com/article/1431981/comments?source=feed#comment-18821591 18821591 Tue, 14 May 2013 15:19:30 -0400 http://seekingalpha.com/article/1428501/comments?source=feed#comment-18764401 18764401 The article was incisive and truly on point, except for one common misconception reflected in your last paragraph. MLPs are not required to distribute most of their cash flow. Partnerships are different from REITs and BDCs, which are in fact required to distribute most of their earnings. There is no such requirement for a partnership.
Elliot Miller]]> Mon, 13 May 2013 11:17:48 -0400 The article was incisive and truly on point, except for one common misconception reflected in your last paragraph. MLPs are not required to distribute most of their cash flow. Partnerships are different from REITs and BDCs, which are in fact required to distribute most of their earnings. There is no such requirement for a partnership.
Elliot Miller]]> http://seekingalpha.com/article/1418301/comments?source=feed#comment-18729831 18729831 Sun, 12 May 2013 09:27:36 -0400 http://seekingalpha.com/article/1418301/comments?source=feed#comment-18674201 18674201 My take is that Barron's is assisting the shorts in a concerted attack on Linn which is unjustified.
It is true that Linn had a tough first quarter but the adverse weather and infrastructure constraints impacted many others as well, and while Linn did not cover its first quarter distribution it is confident that annually not only will the distribution be covered but in addition the post-Berry acquisition enhancement from $2.90 to $3.08 will be covered as well.
I have already expressed the view that Linn's position on derivatives is mandated--required--by the Financial Accounting Standards Board for GAAP accounting and there is no reason why it would be inappropriate for accounting for DCF.
The Barron's article was a smear piece, pure and simple. Imagine an editor allowing Andrew Bary to assert with no evidence the unprovable allegation that Linn investors think that Linn is a midstream MLP. And I have seen allegations that Bary's sources -- two tiny hedge funds-- were short Linn and that fact was not disclosed.
I also think that this is the shorts' last pass at Linn, since once monthly distributions start in July it will too expensive to borrow units to short and it's too risky to do a naked short.
If I did not already have such a substantial position in Linn I would be a buyer now.
Elliot Miller]]> Fri, 10 May 2013 11:07:12 -0400 My take is that Barron's is assisting the shorts in a concerted attack on Linn which is unjustified.
It is true that Linn had a tough first quarter but the adverse weather and infrastructure constraints impacted many others as well, and while Linn did not cover its first quarter distribution it is confident that annually not only will the distribution be covered but in addition the post-Berry acquisition enhancement from $2.90 to $3.08 will be covered as well.
I have already expressed the view that Linn's position on derivatives is mandated--required--by the Financial Accounting Standards Board for GAAP accounting and there is no reason why it would be inappropriate for accounting for DCF.
The Barron's article was a smear piece, pure and simple. Imagine an editor allowing Andrew Bary to assert with no evidence the unprovable allegation that Linn investors think that Linn is a midstream MLP. And I have seen allegations that Bary's sources -- two tiny hedge funds-- were short Linn and that fact was not disclosed.
I also think that this is the shorts' last pass at Linn, since once monthly distributions start in July it will too expensive to borrow units to short and it's too risky to do a naked short.
If I did not already have such a substantial position in Linn I would be a buyer now.
Elliot Miller]]> http://seekingalpha.com/article/1417361/comments?source=feed#comment-18639491 18639491 Maytal:
Of course, with the bonds all income is currently taxable at your highest marginal rate plus 3.8%, whereas the distributions to unit holders are tax deferred until the units are sold (of course with a reduced basis and recapture income subject to the release of suspended passive activity losses).
Elliot Miller]]> Thu, 09 May 2013 15:08:45 -0400 Maytal:
Of course, with the bonds all income is currently taxable at your highest marginal rate plus 3.8%, whereas the distributions to unit holders are tax deferred until the units are sold (of course with a reduced basis and recapture income subject to the release of suspended passive activity losses).
Elliot Miller]]> http://seekingalpha.com/article/1418301/comments?source=feed#comment-18626971 18626971 Thu, 09 May 2013 11:38:15 -0400 http://seekingalpha.com/article/1406991/comments?source=feed#comment-18532381 18532381 Elliot Miller]]> Tue, 07 May 2013 09:54:29 -0400 Elliot Miller]]> http://seekingalpha.com/currents/post/945471?source=feed#comment-17730861 17730861 Wed, 17 Apr 2013 09:28:30 -0400 http://seekingalpha.com/article/1345131/comments?source=feed#comment-17730081 17730081 MLP distribution--including those from MMLP-- are not tax free. They are tax deferred, a big difference.
Elliot Miller]]> Wed, 17 Apr 2013 09:17:58 -0400 MLP distribution--including those from MMLP-- are not tax free. They are tax deferred, a big difference.
Elliot Miller]]> http://seekingalpha.com/article/1341531/comments?source=feed#comment-17729671 17729671 I assume that you meant "upstream" not "downstream" in your reply to Lee.
Elliot Miller]]> Wed, 17 Apr 2013 09:11:12 -0400 I assume that you meant "upstream" not "downstream" in your reply to Lee.
Elliot Miller]]> http://seekingalpha.com/article/1339721/comments?source=feed#comment-17670641 17670641 Elliot Miller]]> Mon, 15 Apr 2013 20:23:21 -0400 Elliot Miller]]> http://seekingalpha.com/article/1339721/comments?source=feed#comment-17597841 17597841 The income is NOT "tax free". It is tax deferred. There is a big difference between the two.
Elliot Miller]]> Sun, 14 Apr 2013 09:31:38 -0400 The income is NOT "tax free". It is tax deferred. There is a big difference between the two.
Elliot Miller]]> http://seekingalpha.com/article/1339611/comments?source=feed#comment-17597411 17597411 That's a sensible approach but I always look at the economics and fundamentals of an investment on an after tax basis.
Elliot Miller]]> Sun, 14 Apr 2013 09:16:55 -0400 That's a sensible approach but I always look at the economics and fundamentals of an investment on an after tax basis.
Elliot Miller]]> http://seekingalpha.com/currents/post/933241?source=feed#comment-17447141 17447141 Linn hasn't sold it. They don't hedge by futures. They deal in swaps and puts.
Elliot Miller]]> Wed, 10 Apr 2013 10:46:38 -0400 Linn hasn't sold it. They don't hedge by futures. They deal in swaps and puts.
Elliot Miller]]> http://seekingalpha.com/currents/post/933241?source=feed#comment-17406091 17406091 Tue, 09 Apr 2013 12:26:13 -0400 http://seekingalpha.com/article/1273431/comments?source=feed#comment-17317121 17317121 The problem is that no Congress person understands these facts.
Elliot]]> Sun, 07 Apr 2013 08:53:25 -0400 The problem is that no Congress person understands these facts.
Elliot]]> http://seekingalpha.com/article/1300561/comments?source=feed#comment-17316651 17316651 That's not entirely true. Not all MLP distributions are returns of capital. Often about 20% or so are partnership earnings and profits currently taxable at the highest marginal rate. Those amounts are not subject to recapture on sale of the units. The only portion of the distribution subject to recapture is the return of capital portion that reduces basis.
Elliot Miller]]> Sun, 07 Apr 2013 08:31:09 -0400 That's not entirely true. Not all MLP distributions are returns of capital. Often about 20% or so are partnership earnings and profits currently taxable at the highest marginal rate. Those amounts are not subject to recapture on sale of the units. The only portion of the distribution subject to recapture is the return of capital portion that reduces basis.
Elliot Miller]]> http://seekingalpha.com/article/1310881/comments?source=feed#comment-17301251 17301251 You are correct about the capital appreciation, which I recognized when I sold the units in 2012. I also have nice capital appreciation in LINE, MWE, PAA and others, which--as you have noted--comes from being a patient investor. I only sell units after a great deal of thought and for what I believe is a good reason. (I just sold AMID.)
Elliot]]> Sat, 06 Apr 2013 11:09:35 -0400 You are correct about the capital appreciation, which I recognized when I sold the units in 2012. I also have nice capital appreciation in LINE, MWE, PAA and others, which--as you have noted--comes from being a patient investor. I only sell units after a great deal of thought and for what I believe is a good reason. (I just sold AMID.)
Elliot]]> http://seekingalpha.com/article/1322101/comments?source=feed#comment-17267411 17267411 I have owned a large position in LINE since 2008 so I just could not bring myself to bite the bullet and sell and then buy LNCO. Instead, since my original basis in LINE will likely be entirely consumed this year I just bought more LINE to increase my basis and continue the tax deferral through 2014. I may continue on this treadmill until I die (hopefully a very long time from now) and my estate will get a stepped up basis---I know, not for the recapture portion, but it all goes to my wife so the marital deduction takes care of the smaller step up. After my wife's death the recapture then becomes my kids' problem if /when they sell the units.
As to knightmine's question about why LNCO shares have performed better than LINE units, the latter have been the subject of shorting by NY hedge funds, which raised and disseminated the spurious issue of accounting for swaps in the calculation of DCF.
Elliot Miller]]> Fri, 05 Apr 2013 11:37:11 -0400 I have owned a large position in LINE since 2008 so I just could not bring myself to bite the bullet and sell and then buy LNCO. Instead, since my original basis in LINE will likely be entirely consumed this year I just bought more LINE to increase my basis and continue the tax deferral through 2014. I may continue on this treadmill until I die (hopefully a very long time from now) and my estate will get a stepped up basis---I know, not for the recapture portion, but it all goes to my wife so the marital deduction takes care of the smaller step up. After my wife's death the recapture then becomes my kids' problem if /when they sell the units.
As to knightmine's question about why LNCO shares have performed better than LINE units, the latter have been the subject of shorting by NY hedge funds, which raised and disseminated the spurious issue of accounting for swaps in the calculation of DCF.
Elliot Miller]]> http://seekingalpha.com/article/1310881/comments?source=feed#comment-17266651 17266651 As a former ETP unit owner I became impatient with all of the unfulfilled promises of distribution increases (which have not happened for almost 5 years) and for the added complexity every time ETP does a transaction (such as acquiring Sunoco's retail operations which are not MLP qualified in order to obtain control of the GP of Sunoco Logistics).
Elliot Miller]]> Fri, 05 Apr 2013 11:21:21 -0400 As a former ETP unit owner I became impatient with all of the unfulfilled promises of distribution increases (which have not happened for almost 5 years) and for the added complexity every time ETP does a transaction (such as acquiring Sunoco's retail operations which are not MLP qualified in order to obtain control of the GP of Sunoco Logistics).
Elliot Miller]]> http://seekingalpha.com/article/1300561/comments?source=feed#comment-17266431 17266431 It's not just ignorance that keeps the battle going: it's also the Code which is a model of obscurity and obtuseness.
Elliot]]> Fri, 05 Apr 2013 11:16:44 -0400 It's not just ignorance that keeps the battle going: it's also the Code which is a model of obscurity and obtuseness.
Elliot]]> http://seekingalpha.com/article/864801/comments?source=feed#comment-17194591 17194591 Elliot Miller]]> Wed, 03 Apr 2013 21:46:50 -0400 Elliot Miller]]> http://seekingalpha.com/article/864801/comments?source=feed#comment-17194551 17194551 Today I bought units in Eagle Rock Energy Partners (EROC), and in addition I bought additional units in Linn (LLINE) and Martin Midstream (MMLP).
Elliot Miller]]> Wed, 03 Apr 2013 21:44:51 -0400 Today I bought units in Eagle Rock Energy Partners (EROC), and in addition I bought additional units in Linn (LLINE) and Martin Midstream (MMLP).
Elliot Miller]]> http://seekingalpha.com/article/1310881/comments?source=feed#comment-17194451 17194451 I bought additional MMLP units today at $38.05, $38.06 and $38.13. At $38.13 the units yield a tax deferred 8% based on a distribution of $3.08.
Elliot]]> Wed, 03 Apr 2013 21:41:07 -0400 I bought additional MMLP units today at $38.05, $38.06 and $38.13. At $38.13 the units yield a tax deferred 8% based on a distribution of $3.08.
Elliot]]> http://seekingalpha.com/article/864801/comments?source=feed#comment-17127151 17127151 As soon as I saw the NT 10-K filing I decided to sell, and I have been doing so yesterday and today. The likelihood is that the banks will extend the temporary waiver which expires on April 15th but they will likely impose restrictions, including on distributions, and perhaps compel a reduction in the current distribution.
Elliot Miller]]> Tue, 02 Apr 2013 15:37:27 -0400 As soon as I saw the NT 10-K filing I decided to sell, and I have been doing so yesterday and today. The likelihood is that the banks will extend the temporary waiver which expires on April 15th but they will likely impose restrictions, including on distributions, and perhaps compel a reduction in the current distribution.
Elliot Miller]]> http://seekingalpha.com/article/1310881/comments?source=feed#comment-17085621 17085621 I have owned a significant position in MMLP for several years. It is a core holding of mine, which I continue to increase from time to time.
Elliot Miller]]> Mon, 01 Apr 2013 16:19:01 -0400 I have owned a significant position in MMLP for several years. It is a core holding of mine, which I continue to increase from time to time.
Elliot Miller]]> http://seekingalpha.com/article/1310881/comments?source=feed#comment-17085561 17085561 Elliot Miller]]> Mon, 01 Apr 2013 16:17:20 -0400 Elliot Miller]]>