I have been in SXL for about 4 years now, and from what I can see, there is nothing going on except a rotation in stocks by the general market. The yield on SXL is lower than other MLP's at about 4% - CMPL NRGY, APL (all of which I own) have larger yields, but are not as strong a company as SXL. Having said that, as people fear rising interest rates, they may consider yield, and keep selling SXL until the yield is up a bit more . . .just my thoughts, but SXL has a long history of increasing dividend - SO BOTTOM LINE - this is a very good buying opportunity for those of us who want to increase our holdings.
Tend to agree with you. SXL has quite a few projects in the loop and I can imagine that there will be buyer acceleration as these are announced. On the macro, I am very pleased with their operational concept and the synergies that they have created in what looks to become a very considerable market in the northeast. A few pauses can be expected but I think folks need to look at their distribution growth and their unique strategy rather than just their yield.
I have been in and out of SXL for last 10 or more years. What is happening now on low volume is a country trying to price into each holding as far as when and how much a rise in interest rate will effect their stock. SXL has been raising its distribution 5% each quarter as they have given guidance.
They have Mariner West coming up in next month and that is why I think it is holding its own while rest of mlp group is retrenching. SXL has a major project being completed every quarter for next 2 years. So I am holding on for forseeable 3 years or until ETP buys them out. Marv