Wow, +4% haircut today over UBS downgrade:
"UBS downgraded Pioneer Southwest Energy Partners L.P. (NYSE: PSE) from Neutral to Sell while maintaining a price target of $22.00 saying the premium is unwarranted.
Analyst Christopher Sighinolfi comments, "PSE enjoys a portfolio of long-lived, slow decline assets, an oil-directed drilling program, balanced commodity exposure, and a close affiliation with Pioneer Natural Resources (PXD). However, units are up ~11% YTD, outperforming peers by ~380 bps over that time. PSE’s relat ively weak hedge profile, tight coverage ratio, limited distribution growth history, and 8.3% yield leave us cautious at current levels; hence, we are downgrading to Sell on valuation.""
PSE hedges--which admittedly do suck in 2013--will dramatically improve in 2014. This year is definitely a good time to accumulate shares since production + pricing will both improve a lot next year. Collecting a secure 8% dist while you wait is hardly a bad deal.
Right. You have to watch out for UBS. They do slimey analysis. It's been getting really out of hand too.
They don't follow these units so what would they know......nothing! Time to short UBS if they have to resort to bad advise to make money.
lol - this time when my UBS broker calls wanting me to dump my PSE I'll buy PSE instead and dump some financials. The way I see it, anybody long knows exactly what they own and realize why they own it.