Today's downgrade from Buy to Hold by Deutsche Bank probably didn't help but the stock has been falling steadily for quite a while. The 10 day, 21 day, 50 day and 200 day moving averages are all showing a downward slope. It doesn't make a lot of sense. No bad news has been reported.
Back in 2003 ,someone clued me in that Shell was selling pipelines and PAA is a good buy,so I took a position in PAA at 22/share.
I met G Armstrong in one of his road show and found out he owns every pipeline stocks in the country.
I held on to it until 2 years ago when it was at 66, I sold it and bought PNG,
PNG went down but PAA went up and splitted for 2.
Now I am back with PAA since PNG was bought out,by PAA.
I dont see anything wrong with this stock or any pipeline MLP including EPD,Kinder Morgan,it is just interest rate is expected to rise so investors are rotating into finance,cyclicals and some emerging markets .
But we are exporting energy-gas,coal ,LNG,NGL etc and with all the new shales ,pipelines would be a good place to be.
If you have a big capital gain in PAA,you can always sell it and find a cheaper one.but there are only so many interstate pipelines the like of PAA,EPD and KMG.
What about some Canadian plays such as PBA,KEYUF.ATGFF ,they are pretty busy up in Canada and they all pay a good dividend,of course Canadian govt wil take 15% and there is foreign exchange risk,but hey,Canada is a safe play not like Middle East or Africa.
I don't see any alarming reasons to sell any shares abbaman. Plains seems to be taking care of business like they always do. Maybe some tax loss selling the past few weeks? My last buy was around $51, might look to pick up more here at $48.
PAA is one of my 2 core holdings in my oil and gas midstream pipeline portfolio. I am not selling units, I am buying more units. My recollection is that PAA starting heading seriously down the downhill slide after the GP units went IPO. I looked at that as a potential addition to my portfolio but decided to pass. This is my second year holding PAA. It is my largest holding and will be getting even larger early next year big time. As I said, I didn't see any reason for the steady decline and still don't. Traders worry about trends like this, I don't. I don't trade. I may never sell my PAA position.