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Enterprise Products Partners L.P. Message Board

  • ponydad2002 ponydad2002 Aug 10, 2010 11:52 AM Flag

    WSJ Article

    Anyone see the article in the WSJ this morning about the rush to MLP's and their "overheated" valuations?

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    • When Goldman Sachs decides to return to the stockholders 90% of their profits and not distribute them as bonuses, I will consider investing in GS.

      • 1 Reply to lotsobuck
      • The obvious was not emphasized. When you have 2+ billion and Cramer audience coming into a small capitalized group you will have an overheated group and about a 10-15% move because of supply and demand. Today a -250 drop shows how fickle the "investors" are, including mlp funds. Also 4 midstream mlp's offered secondaries today to grease the slide. Prices are still 10 % overstated as of today

    • <<<Anyone see the article in the WSJ this morning about the rush to MLP's and their "overheated" valuations?

      Many people and institutions are moving to any investment that has a decent yield...MLP's being just one example.

      Look at the returns/run ups in other income investments. I bought a puny little GNMA mutual fund with excess cash that was going into CD's and it is up 10% in less than one year.

      All the various bond funds are up big as well. Also, divvy funds, oil income funds, high divvy stock funds...all up as folks look for income outside of "risky" non divvy paying equities.

      WSJ is missing that point, and the MLP valuations may move to a higher than historic "new normal" at this point as yield is king.

      • 1 Reply to opie_cunninham
      • Of course they missed the point, because the real fact is all stock equities are valued at their future dividends. There is a real big Ponzi scheme going on out there as lots of these big money making companies have never produced any return (dividend) to any stockholders. Big companies like amazon, google, Cisco, aaple, etc...

        So what are these companies worth? Nothing. Just traders hoping to find someone to sell to at a higher price. When buyers are not around....look out.

        Time to buy epd and kmp or even some oil transport stocks like fro and nat.

    • I guess it is all about what is a 6% tax deferred distribution worth to you.. If you are long term in the MLP's, you might have a different opinion about valuations, however, we have had quite a ride up lately. Time for the short termers to take profit. Distributions are just around the corner. Could be a new buy point on the pullback.

 
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