Everything you say is true. The only thing I would ask is why would SA and OPEC inflict this
amount of pain on itself if it wasn't going to finish what it's started. They have the U.S. oil
industry on the ropes. Why give in now? I hope your right and common sense wins out.
Unfortunately it seems there is way more oil than common sense out there.
Say that! EPD down the most to be the best. Funds want the shares bad. Damn if they will get mine. Treated worst than oil producers. 15% drop in three days. Falling more the crude.
Sentiment: Strong Buy
A OPEC/Non-OPEC deal, IMO, is very close. If oil does not stabilize in the $40-$60 and the supply chain is reduced, nobody will be buying any goods and the economies of many countries will tank, not withstanding the fact that there will be no place to store the excess capacity. The supply must and will shrink until the worldwide demand increases. The US doesn't need to pump oil to survive and the rest of the world knows that. Other countries do not have that option. We have plenty of natural gas to take it's place. Either way, companies like EPD will be moving energy around the US, the world's largest user of energy, whether it is oil or natural gas. Countries like Japan, negative interest rates, who totally rely on oil imports, will not need as much if people are not buying their exports, the same goes for China. Common sense will prevail, the price of oil must stabilize in the $40-60 range (a level at which oil producing countries can fund their economies) and in order to do that, the supply must decrease and everyone with a brain knows that. The rest is just seeing who will blink first.
Saldon, My reply to you was so profane that Yahoo censored it. Your above post trying to sow fear is dispictable . You or no one else or any damn chart can tell where the market is going.
The upstream MLP are on the ropes and many poorly capitalized will disappear . I think some heavily indebted and leveraged Midstreams might also have big issues. But I like both EPD and MMP because of there sound management and finances . As for Majors XOM looks the strongest.
Will add at $19-$20. As Churchill said ," There nothing to fear but fear itself". The best cure for market anxiety is a tall Pacifico Draft Beer. When feeling anxious about the market, have a couple,if still anxious ,have a few more until numb :) Believe me it works:)
I own both EPD and MMP. I think MMP is the best day trader but I will keep both. I MO they are the two best Midstreams . There is probably another good one but I will stay with what I,m comfortable with.
Buying Put is expensive and should only be done when the stock price is at a high. Selling Call on a low is a loser also. I like EPD and will hang tight and add below $20. When she gets to $24-$25 I will sell a January $30 Call for a buck and change. I own some stock that worries me but EPD is not one of them. I,m currently 40% cash and find that comforting. If it's eating you up its best to sell even though you will feel like a fool later when takes off . Good luck.
Not this time. World economy is in the tank. S&p could drop to 1450 based on the charts. Where do you think EPD will be trading if the S&P falls another 30%???
They come out of the woodwork and bash all possible. They want every unit by trying to scare and persuade potential buyers from jumping in. They will say it is going much lower and cutting distribution. Funds short to force margin calls and notice they wait after distribution and earnings to force price down.
Sentiment: Strong Buy
You're correct in that my heirs could sell all the stock as soon as my body reaches room temperature as they receive stepped up basis and therefore no tax man gets involved.
If what you say may happen all these MLP's have to do is covert to either S cor reg corp to keep going. And if the government continues its intent on destroying the
American economy oil and gas will still power homes and what's left of businesses. Solar cannot and never will compete with "ON DEMAND' energy requirements.
If oil and NGLs are not used for anything, your heirs would be smart to sell at the first opportunity. The tax problem will go away the moment you die, but they'll end up with the same tax problem you now have if they hold. I suspect that the whole MLP format will gradually disappear regardless of what happens in the energy market. They were created as a tax gimmick to shelter income without any concern for the long term viability of the business model.
There is huge support between $15 and $17 on the P&F chart. I honestly don't think the price will drop below that. But I do expect the price of crude to trade in the 20's.
And I expect the price of oil will rise as soon as Obama leaves the White House on Jan 20, 2017 since he and his Saudi cohorts instigated this oil take-down to destroy Putin and Russia..
First of all there won't be many individuals left who have cash at the lows. Only the mutual funds.
Second, there are many like me who are raking in massive distributions each quarter and have been since way back in Dan Duncan's days and cannot sell due to huge gains for the tax man..... I will leave the stock to my heirs so they can have a healthy income in the new third world called America.
EPD is not going out of business so hold it until oil and NGL's are not used for anything in our declining economy.
The good news is that someone will buy at the low. The bad news is that someone else will sell at the low. Trying to pick the low is a fool's game. Better to buy little by little as the price drops, gradually increasing the dollar amount as the price goes lower. The most important thing is to BUY QUALITY! I'd stick with MMP and/or EPD (but I prefer MMP.) Don't look at the yield, or you'll end up with a KMI disaster. Quality infers lower yield. Junk is a double digit yield.