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Enterprise Products Partners L.P. Message Board

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  • jimcarrera47 jimcarrera47 Nov 9, 2012 3:20 PM Flag

    something is up

    I'm starting to feel the same way, every day I think it will reach a bottom but it keeps going down. I do feel EPD is a good company but it's starting to make me wonder as I'm down about $14k and it's a major position in my IRA as I'm retired and used to work in the pipeline division for three oil co's. Years back they said when a new one was built that it would take about 3.5yrs to pay for it self ! I hope that we run into some sand on this silppery slope. How can some of the smaller Mlp's be going up when this giant keep's going down? LOL to all Jim

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    • The reason is really simple - reallocation. It is just about done. Several of the major brokers could not sell ETP and a couple others because there were sell recs on them. In the last 3 days those sells turned into hold/quasi buy recs. Thus managed money by the bucketful is moving into ETP and others beaten down and now having better looking prospects. There is also some rotation by that some money out of MLPs. Those $$ ebb and flow.

      jim - Am wondering what you are calling a "slippery slope? The market is down. If you compare EPD to the DJI the Dow is almost exactly even in last 6 months. EPD is up 2% and has paid about 4% in distributions. EPD is only down 6% from its all time high. Not exactly sure about a pipeline paying for itself in 3.5 years. According to KMP it takes 18-30 months to get permits and construction done and then 18 more omnths to fill it. EPD has a coverage ratio and retained cash that are #1 in the industry. The distribution is secure and will grow by about 6% a year going forward. You cannot have owned EPD very long as it has only been above the current price for a couple of months. Suggest you relax.

      There is absolutely nothing happening with EPD. If you doubt that call them. EPD is still my largest holding. Love the reinvestment price with the discount.

      ARB

      • 6 Replies to arbtrdr
      • Wait until January when the light goes on for folks that this is not taxed at the dividend rate as far as the distribution is concerned. Money is going to come flooding in as rates are not going anywhere and 5% is 5% especially with the increase in rate. Already overweight, but I'm a buyer at 50.

        Well I bought at 50 and lower it went....oh well, I'm sure it's tax concerns for a big holder. Considering gains are taxed as ordinary income, if those rates are much higher for high net worth individuals makes sense to book some gains...I guess.

        Interesting because report today that the U.S. will be producing more oil than Saudi Arabia by 2020, do you think that pipelines might benefit from that? Short term pain for long term gain IMO.

        Sentiment: Buy

      • Each time tax reform comes up in DC, chatter starts about MLPs getting their tax advantages whacked. But it hasn't happened previously, and each time the MLPs have bounced up again after the chatter subsides.

      • Nice post, ARB. Some sound facts and perspective helps everyone sleep better at night.

        Sentiment: Buy

      • weewillie08@sbcglobal.net weewillie08 Nov 12, 2012 10:59 AM Flag

        Arb, there may not be anything happening with EPD as you put it. But if you bought the stock last month for $55 and its trading today for $50, then that puts a whole new light on the situation. It'll take a whole lot of dividends to make up for a hit like that. That is a significant drop in shareprice and I see nothing even at this point that would tempt me to buy the stock. Just have to wait and see where all of this stops. When I see this level off and then show some volume on the up side, I'll considering buying shares. But not the way it is right now. Good luck investing.

      • Hey ARB thanks for the reply. I havn't owned it this time for very long. I've done better with PAA. What I can remember about the pay back is when they are up and running. I apperciate and respect your knowledge in this area as I'm somewhat new to investing and stick close to oil. I've managed to increase my saving by 200% in 3.7yrs. as I started in 09 when every thing was down. I've made some mistakes and left some on the table but I feel now that I don't want to gamble as much as I did in the past. I guess I got a little frustrated today. Jim

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EPD
34.13-0.42(-1.22%)Dec 19 4:06 PMEST

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