Each time I see a post that posits that the price is "overpriced," it reminds me that nearly all of the biggest mistakes I've made in over 50 years of investing have been selling "overpriced" stocks. If the fundamentals of a company and a business are sound, eventually the "overpriced" price turns out to look "cheap." Once you sell at a profit, you'll have to pay a tax. Tax dollars are dollars that are gone forever. You can't get them back no matter how much you might beg and plead with the IRS. They're dollars that you'll never again be able to invest to make more dollars. Until the business that EPD is engaged in begins to look obsolete, I'm happy to just enjoy the ride. There's an old adage in investing; "Cut your losses, and let your winners run."
The implied yield is 3.3%. if it could get there it would merely be the pump before the dump
fair value for even the best of class mlp is at the equivalent of a 5% yield which would indicate fair value under normal market conditions to be in the $56-$60 unit range
some large investment banks are quietly advising clients to take profits or hedge with purchasing puts
the only way to justify mlp valuation is thru yield and EPD's yield jut does not justify new money to flow in at a time when they markets are obviously frothy, great risk very little reward moving forward
at current rates of distribution growth/yield relative to valuation EPD will drop further faster than others when rates rise and the market tanks downward
if Hedgeye were able to concoct a negative report on EPD as they did on LINE and KMP it would be an outright massacre as the yield corrects
EPD is becoming a victim of its own success
I suggest you look at the one year chart; from around $60 to $75, hey 20 percent growth and a nice dividend. I see growth stocks not posting appreciation that high. This is from a conservatively run company that has the dividend cover with tons of room to spare, with new business growth hitting on all cylinders!! In the sweet spot with their pipelines and other high growth projects.
Over valued is just crooks trying to talk it down for their own gain... hold this one many years is my advice..
Note- have held it for around 3 years and very happy, more to come...
I have a decent cushion at this price. Whenever I think about getting out, EPD pushes higher. I'm just not sure it makes sense to sell, pay the capital gain tax, and then hope for a pullback that will let me get back in at a price that covers my tax bill next April. I also have to calculate the lost distributions - which move inexorably higher - before it drops enough to re-establish the position. As new projects come online, earnings should also increase. Management seems to know what they're doing and have a good handle on the overall operation. Therefore, I'm not adding but not selling either. I'd definitely consider adding if there's a good opportunity. Basically, I'm constrained by tax considerations.