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Plains All American Pipeline, L.P. Message Board

  • ma_perkins_2 ma_perkins_2 Jan 21, 2010 12:44 PM Flag

    down again!!

    sumbodie pleeze tell me what is happening to this stock!!
    It has gond down sinse i jumped in two days ago!!


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    • If you have to worry about the price every day, GET OUT NOW. I'm sorry but to whine about the daily price is pretty pathetic. Buy the stock for a reason and not just immediate price movement up.

    • Perhaps one of the reason it is down is the ex-div date is

    • Poor timing on your purchase.

      Plains is a well run MLP, but it is very large relative to many other MLPs and rapid growth will be difficult. They manage assets very well, and the plans to spin off the natural gas storage assets into a stand alone MLP actually makes PAA less attractive. I for one will be a strong buyer of the PNGS when it IPO's. It will be a premier platform for storage assets, which should command a healthy valuation premium over crude gathering assets etc.

      MLPs are cash flow machines, and many investors buy them and sit back and collect the distributions every 3 months and pay little attention to the daily price fluctuation. Over time, most MLPs manage to grow the distribution at a good healthy clip which is rewarding and over time, causes the yield on original investment to become very attractive.

      • 2 Replies to rrb1981
      • What happens to a covered call if the company spins off its major investment section. PAA strength is storage and contango of its oil at Cushing. Appreciate any intelegent answer.

      • rrb1981 wrote -

        "They manage assets very well, and the plans to spin off the natural gas storage assets into a stand alone MLP actually makes PAA less attractive."

        rrb1981, I have respect for your posts. You are a knowledgeable poster and investor. I wish to express an alternate wiev of the statement that the PNGS IPO will make PAA less attractive.

        Before we are able to make a determination of the benefits to PAA of the creation of PNGS we need to know the following:

        (1) Will PAA be the general partner?
        (2) If PAA is the GP what are the GP - LP "splits"?
        (3) Will PAA continue to develop NG storage asstes and drop such assts down to PNGS when ready to generate cash flow (potentially at a profit to PAA) (and PAA continue to benefit from IDR's)?
        (4) Drop down price and terms of initial PNGS IPO?
        (5) Market yield for PNGS (initial and over time)?
        (6) Other details of the PAA - PNGS relationship.

        In summary, the IPO of PNGS could effectively result in an attractive financial vehicle to PAA, with PAA retaining substantial upside through IDR's. Currently, we do not have enough information, but PAA management has a history of very solid management. PNGS investors are likely to accept a lower yield, along with lower debt costs than PAA. This would result in a win for new PNGS investors and a long term win for PAA holders.

        -- Sooner

    • Oil prices have dropped quite a bit, and the fire at Cushing last night probably didnt help either.

30.92+1.49(+5.06%)Sep 28 4:01 PMEDT