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Brookfield Infrastructure Partners L.P. Message Board

  • croakrman croakrman Mar 13, 2013 10:26 AM Flag

    Why the 10% drop?

    Over the past several days, BIP share price has declined about 10 percent. No comment from management or the blogs that I can find. Does anyone have any insight or intelligence regarding this decline? I adore this stock (1000 sh bought at 25/sh) and consider it to be long term holding. Thanks..

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    • This seems to be the reason for BIP drop:

      Sentiment: Sell

      • 1 Reply to danfdd
      • I for one am grateful for this post of yours, Danfdd. Some have said the Seeking Alpha article is wordy and lacks substance, and, while there's no denying it's wordiness, I found a lot of meat there. Maybe it takes an eye for the subtleties of accounting and character to latch onto the meat of the article's content, but I found enough to convince me to steer clear of BIP, which I was considering buying.

        Thanks for the share!

        Sentiment: Sell

    • I have a similar cost and position. Others have sold to book gains. Stay the course. At 35 a 5% yield should bring in more bids.

      Sentiment: Hold

    • Negative article in Seeking Alpha about BAM and questionable accounting. Typical short-seller stuff, but real in terms of market perception.

    • Fidelity provides analyst reports, where i found that Ativo Research downgraded BIP to a "sell" rating last Friday 3/8, saying they expect BIP to underperform next 6-12 months based mostly on valuation, but to some extent to price momentum, and "other measures" of fundamental momentum (lack of earnings surprises). Basically, they think BIP has appreciated too much relative to its peers lately so is overvalued

      Jefferson research also came out with a note last Friday rating BIP as a "Hold" with main negative again being valuation while also citing weak operating efficiency balanced by excellent cash flow quality, and strong earnings quality and balance sheet

      I did use today's dip of ~$1.5 under the 50 day moving average (last time that happened in Nov was a good buying opportunity) to buy back my June 40 calls on , locking in an acceptable little option profit. my stock basis in teens is low enuf for me to hold through selloffs but I am starting to trade call options on swings in share price to (try and) increase my return on invested capital, looking to resell calls on a strong swing above the 50 day MA . I'd consider adding more shares on a dip to near 35, as that would be at the bottom of a 2 SD linear regression channel on daily chart (the recent high at 40.88 touching the top of that 2 SD LR channel and was ~$3 above the 50 day moving average)

    • kirkscruggs Mar 13, 2013 10:36 AM Flag

      I was wondering the same.

34.30-0.04(-0.12%)Oct 21 4:02 PMEDT