Billy Joe, I would suspect that not too many people on this board go to a mechanic to get their car "Fixed". I guess they go to get their car "maintained", as in oil change, tire rotation,detailed, etc. I do not get your analogy....
I have no issues with saying that yes, MLP's are an arbitrage between the spread between the financing costs(debt and equity) and the inverse of the multiple that they pay for the asset. Note, that if MLP's could buy assets with all debt, they would still make money as the multiple they buy at typically are around 6x or 7x which amounts to around 14% to 16% and borrowing costs are typically around 8% to 10%. The risk obviously goes up when it is all debt financed, but was just pointing out that the public/private analogy isn't all correct....its not public-private arbitrage but purchase cost-financing cost arbitrage.
The question becomes this: why doesn't Wulff rip all of the MLP's rather than just Kinder Morgan? Seems like he ought to be anathema to all of them, no matter what size or what splits...no, the issue is with Rich Kinder and the fact that he is almost soley repsonsible for the proliferation of MLP's in the past 5 years. Look at all of the copycats...they all want to be Kinder. This ahas also led to the lack of following of those depleting royalty trusts..look at the yields that they are assigned.
The catch is that, ordinary investors cannot go out and buy a $200 million dollar gathering system or a pipeline. If you think about it, all businesses boil down to selling something for more than you paid for it.
"I can't tell you the number of people I have spoken to and chatted with online, that have mentioned that they found inaccurate information on mcdep"
It is common for the unsuccessful to attack the successful. And such it is with the attacks on Rich and company. Not much we can do about that.
But, one can use things like this as an opportunity, like making lemonaid out of lemons.
Example: I retired from GLW and own stock in it. USB downgraded GLW with reasons that did not make logic. Stock lost 14% in 3 days. I bought on the bottom Friday, and sold today with a gain of 11.6% in two working days. It was clear to the informed investor that the USB discussion was not logical.
In any event, I do not get upset about those things I cannot control. (Not anymore) Just take what the market offers me.
Also worth a thought: the price of shares only count on the day you buy, and the day you sell. Rest of the time is nor relivant.
Have a nice evening.