There is now a market rumor in the options market that anticipates an acquisition for ETE. Nothing about NGLS but it would not surprise me. Good luck longs!!!
The CEO of ETE doesn't like to be turned down. He WILL be back .... friendly like or hostile.
Have not seen anything posted on website. I'm also curious if the post-merger will affect the distribution. Maybe we will actually start getting a benefit out of the merger.
I understand your position and it is different than mine. I am in this in the high 30's and low 40's. I have risk limited myself out at just under 4,500 shares. Targa does face some issues in successfully intergrating the physical assets of Atlas as well as potential problems blending managment cultures of the company. If successful (or not) this should be evident in 6-months at which time the stock should move up. I also expect the price of WTI oil to be around $60 stabilzed this summer and look for $70-75 by the end of the year. This will also help the pricing of NGLs which is really to only pricing exposure Targa has to commodities.
sorry to post again..one final point that on my point and figure chart pretty much all the MLP's have now switched to a positive mode from a negative which means we may get some support going into the summer.
appreciate your thoughtful comments. Not looking for a quick buck but not waiting two years either. Other MLP's are doing so much better... such as TEP. No reason to wait to see if this one can figure it out I'm down 26% on NGLS and UP 26% in TEP. One thing Louie does get right is that when these stocks fall to a "D or F" the buying power is all gone. I did buy this at the top so should have sold this long ago...but was kept holding due to the increased dividend. This of course did nothing to support the stock. your point that we may see more problems ahead is even more of a reason to sell and move on...anyway hope this works for you.
If you are looking for a quick buck then you should follow Louis' advice. You want a strong company with predictable cash flows that WILL recover with the oil market over the next 12-24 months and give you a double (maybe a little more if taken over by Energy Transfer Equity) then this is for that type of investing. By the way, LN handed me a great little stock years ago called Medifast. I rode it from the low single digits into the 30's but it was bumpy along the way with an ex-con preacher trying to destroy the company.
NGLS is solid. But they do face some execution risk in re-starting some of Atlas' plants. That is more of a concern to me than the price of oil.
Cheers & Good Luck to all longs.
oil up stock doesn't move oil down price drops no buyers here just a mess...downgraded to an"F" rating at Navellier...i'm selling and moving on to a better stock
Analyst Christopher Sighinolfi commented, "Despite 1) NGLS being one of the more commodity exposed MLPs under our coverage, 2) our expectation for Galena spot cash flows to materially weaken, 3) our expectation for mgmt guidance to be lowered and 4) a material hedge benefit roll-off in 2016, we believe the market has sufficiently risked its exposures and units now offer an attractive risk/reward; we are upgrading NGLS to Buy, from Hold, on valuation. Our DDM & Target Yield derived target prices remain $47 (NGLS) and $95 (TRGP)."
I'm staying put. I wasn't pleased at $40 and certainly not at $37 but I think we've turned the tide. Very interesting comments by Rick Kinder who founded the largest pipeline partnership in the U.S. (KMI) Oil at $43 a barrel brought out the end users in full force... Not the speculators and financial players but the end users. At $43 a barrel every massive consumer of oil wanted to lock in contracts and guess what? No one wanted to write those contracts! Oil quickly bounced. $43 is the floor on WTI and I'll believe Rick Kinder anyday over the usual talking heads. Rick Kinder added another 100,000 shares of KMI to his own holdings at those prices and HE'S NEVER SOLD A SHARE according to CNBC. Natural gas and NGL's track oil so I am long NGLS for the recovery in energy. I have a place for this yield in my portfolio every day of the week. Wish I could have loaded up at $37 instead of $50. May average this one down now.
There is some 1BCF in new NG usage for pwer plants this year and more in 2016. 5BCF for LNG exports in late 2016 and 1BCF in demand from new industrial plants in 2016/07. Well are not being capped! Silly statement. Some have shut down, but will come back on line with the turn of a valve.
I like Fishin's explanation below. It explains why we dropped, and also why we will recover. So don't fret about it. Enjoy collecting you (tax deferred or tax exempt) distributions. I'm considering buying more. I just need to sell some other stuff, and its getting closer.