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NuStar Energy L.P. Message Board

  • digimarket2005 digimarket2005 May 29, 2008 4:45 PM Flag


    Magellan Midstream Partners also down big, taking out 52-month lows.

    There are fears about oil/fuel demand in the US going forward. Check the link below:

    Some incredible buying opportunities are shaping up for both NS and MMP. Even in the event of a 10% decline in demand, and then progressive sluggish growth going forward, NS would still be cheap.

    My next buying point is $47.50, but I doubt I will get that lucky. This type of business is a CASH COW. Oil up 300% over a few years, and demand just started falling in low single digits.

    The sheer idiocy of the ONE and ONLY on this board, whose name I should not mention, is appalling.

    Investing is about balancing return and risk.

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    • Indirectly, it is.

      The Citgo buy is a major loser (and yes, he is part of the reason why it is a loser).

      They pay 450M for the deal, and then within weeks post a 60M loss coming out of the gate.

      They diluted the company's stock to buy this waste, and then to make things worse by absorbing a major loss. Can anybody explain to me why they are better off now than before the deal?

      Good luck.

    • The poor guy probably hasn't seen any light other than that emitted by his monitor in weeks. I've never seen anyone so obsessed. I check the board once in a while and all I see is this dude "kerfinating" all over himself.

      I believe your assessment is about right. People fear that demand destruction will hurt the MLPs, but it's all just part of the deal. As demand destruction lowers the price of oil and gas, the lower price will increase demand. The pipelines have shown their ability to generate cash consistently through bull and bear markets, expansions and contractions in the economy, etc. While there is some elasticity in demand, there is not as much as people imagine.

      If oil were to remain this high, alternative energy sources would possibly be able to get some traction before lower oil prices kick the legs out from under them. That's the real threat, but it's pretty far in the future. Nat gas is the obvious alternative between now and hydrogen and that is not a threat to pipelines.

      Good luck,

50.15+1.66(+3.42%)Jul 29 4:02 PMEDT