What am I missing. Why would funds or anybody sell at a 32 month low? Sold my BMY and ready to buy more EPD. But when? Did EPD buy oil and gas well services?
Sentiment: Strong Buy
You're being rational. Unfortunately, the market is irrational. I fully agree that EPD, along with the rest of the group, appears to be way oversold. I suspect that we will not see anything reminiscent of "panic buying" to come in. Instead, I expect to see the selling gradually slow. If EPD and the rest of the group can form a sideways base for a few months, other rational investors will gradually see value and start buying. That would be far preferable to "panic buying" that is unlikely to be sustainable for very long. I'd be a buyer here, but very slowly and cautiously. I'd commit no more than 10% of my available funds at any one time and be prepared to pay up once the price stabilizes. When the present trend reverses, there will be plenty of time to jump aboard.
That's my take.
Excuse me but if you live a few years you will pay the man. Your tax deferral is only for your basis. After your basis is returned to you the Distribution will be taxable common income.
And that idiot Cramer came out and said that the selling in MLPs has been irrational, probably because some hedge fund got into trouble and has to unload to raise cash. He's wrong more often than right, but people listen to him.
It may not be today however within the next week we will see some real panic on the upside. Might be a good time to reduce any puts you have been hedging with. Watch the tape as well. Might see the bid fluctuating wildly at times.
It's still easy money if you are in mlp's for the long haul (not a trader and if you are I do feel for you). The energy sector will not go away unless you want to freeze, eat raw food, take cold showers, or perish without a/c. But, it's you choice!
Commodities in general are being liquidate in preparation for the global economic meltdown which may or may not happen (who can predict the future). Buying ops abound if you are into mlp's for the long haul and the yield. Otherwise stay put because you missed the boat if you want to sell your position.
EPD has been able to maintain DCF in as commodity prices fall. This from COO in the Q1 2015 conference call.
"For example, in the first quarter 2015, primarily as a result of lower commodity prices, our revenues were down 41%, to $7.5 billion, but our costs and expenses were down by 44%". ( DCF was up 4% from prior quarter or q1 2014. )
with less than 1% of the shares shorted I dont believe that's the reason for the decline.
Oil is hated right now. MLP'S, E&P co.'s are all being sold. The whole sector appears
to be nothing more than a trade. I'll hold what I've got and wait for the dust to settle. I
dont think were near the end yet and I'm not in any hurry to buy. I think the rise up will
be slow with many opportunities to buy.
The issue is almost any MLP is a steal. Most analyst have buys on the majors including KMI with much higher
prices. The average drop is over 30 percent in the last few months. My sense is that the recovery will take
hopefully not years. The market is tying them too closely with the price of oil, albeit that a lower price will affect earnings to some extent.
It's all about isolating Russia. This guy occupying the WH has a vendetta against Putin since the Ukraine incident and it has to do with Russian Gas sales to Europe. Haven't you been following the news from abroad? The Southern pipeline? The northern pipeline around Ukraine. And now Iran.
Bet u didn't know about the lucrative arms deal the Russians got from the IRAN DEAL, did you?
The whole Syrian fiasco resulted in American troops on their soil overthrowing the government to make sure the Saudi pipeline instead of the Russian pipeline went through to sell energy to Europe. It's always about ENERGY. Christ, Saudi and the US just pretend to be at words.