The RSI is now around 20, indicating very oversold. Of course, stocks can stay oversold (or overbought) for a long time. Also remember, each NRGY common share owns about $8 worth of NRGM shares. At this price, you are getting the propane business for less than $8. Not sure what the multiple is on their normalized EBITDA, but ETP sold their propane business for over 10 times EBITDA.
The correct trade was to sell the bounce after the distribution announcement. The market hates uncertainty.