Funds also dared not show this on their books @ the end of qtr.
So they sold and then buy back a few days later. This is the financial wizards at work.LOL
actually it was a well written piece. Only the headline is a bit off. MLPs have already cut capex so that projects are only being built when there is adequate demand. Is 2016 going to be less than 2015? Yes. Is this real news today? No.
Jeff Birnbaum of Wunderlich Securities took a look at consensus 2016 capex estimates for more than 80 midstream MLPs and found that many will need to reduce or eliminate their capital spending plans::::::
I am sure EPD's board members are begging him to join them with their decisions making process. Read if available to you. What a piece of garbage. Waste of cyberspace.
Sentiment: Strong Buy
It obviously was no coincidence that the worst selling happened right before the end of the quarter, when funds need to square their books re: leverage ratios and debt covenants.
You seriously think the price movement for a single day is meaningful? Also EPD is associated with oil price by many (see dlw below). EPD mostly owns NG and NGL gathering, storage, processing, and shipping assets. Little exposure to oil. MMP is very different mainly into terminalling and thus exposed to margins on sales from its terminals. Those go up and down.
Both have a 20+% rise since the bottom on Sep. 29th. Would love to see
it hold in the $27 range and slowly start to move up. I would be happy with
mid $30's by years end.
MMP is up +1.60%, EPD is down -.65%....They both stay pretty close together and both are good companies, what gives?
agreed, but for me, and I think many here we'll drip our distributions, take our 5% gift
and be content knowing there is little else in the energy space that is as good.
The drop was a combination of forced fund liquidation and panic selling for anything associated with oil. That EPD is about 85-90% fixed fee and almost totally NG has no apparent meaning. Now we are going to hear the revenues are down by 50%. Does it matter that revenues when you transport gas for a fee mean nothing. EPD technically buys the gas, transports it and then sells it back tacking on a transport fee. The buying and selling of gas net each other out. No profit or loss, but $$ amount is 50% lower this year. transport fee is the same.
Stupid people not looking at the real picture.
Market will retest break through the lows
Todays action in biotech mirrors last Tuesdays action in MLPs... Last Tuesday MLPs were down about 7% and then closed down about 4%..... the exact reflection in biotech today
Big players (hedge funds) are getting out of the broader market... they are just doing so in a very orderly fashion..... its just a matter of time till we see a really big selloff
IF we were to se a 7% intraday drop in the S&P that's a chilling 140 pts... 7% in the Dow is close to 1200 pts
Sectors are not seeing these corrections by accident
You are going to have the opportunity to buy this at or below last weeks prices
Sad you didn't see the long term value in this company. Referring to EPD as "this crapola" clearly indicates that you are not an informed investor, but someone who takes advise and reacts without doing your own due diligence.
I'd like to feel bad for you, but until you change how you invest, you're doomed to do this again and again. It's still not too late to buy this premier company and over time receive superior investment results. But again, do your due diligence and you'll discover this for yourself.