With the recent analyst coverage, are they handing us an opportunity to add to our GEL positions? Even though Credit Suisse is lowering their price target and rating it a hold, there are several others that still rate a buy with price targets at or around the $52 range. Hopefully a market correction is in the near future and it will give us discount prices on many stocks.
My sense is that GEL is today fairly valued based on its' current assets and business level...going forward, GEL has a lot of possibilities but they all depend on crude oil and its' pricing...pipelines,RR facilities and tankcars, 4 new barges, the small Wyoming refinery etc etc...now, if Europe gets its' act together, China keeps buying cars and importing oil, and the Middle East remains in scary turmoil, the price of oil will continue climbing and GEL hits $60/unit..Egypt stabilizes, China cools off, and Europe remains a problem, price of oil hits $85-$90/barrel and GEL drifts to $45/unit IMO. So, I'm with Credit Suisse here and am investing elsewhere right now. My most recent investments have been in PVR and NRP on the basis that their very high distributions will hang in there as they transition out of coal into natural gas etc. I also plan to invest in the new MLP that Phillips 66 plans to IPO later this year.
this company still a winner but with distribution around 4%not that attractive to those looking for yield.im not adding since its my largest holding and im in it for several years this is one of my keepers.
im not adding to mwe either.
i did this week add nicely to ngls.
imho they will be a large winner in the year going forward.
there gp trgp another winner.
as for new positions when the market went crazy on line and took down all the up stream mlps since i own a boat load of vnr i didnt add there but added some nice positions in lgcy and pvr.
i bought mucho of lgcy over 9%and the same for pvr over8%yields.
got to love these dummies.
they both have go on very nice since then.
as for dpm i havent added i read the credit swiss report on that mlp and agreed with them.
if dpm goes under 5o with a yield north of 6%ill add.
im still sitting in cash and waiting for those wall street genuises to give me another great buying opportunity.im not attempting to go thru all my positions with this note just giving u a quick synopsis of my recent thinking.
by the way took the bmw550i all wheel to the cape.
greatest car i have ever owned for sheer speed, handling, and comfort .
the electronics ie radio navigation phone puter etc easy to use.
coming home i took bout an hour off my previous best time and wasnt even tired.
going back to the cape late july and early august love driving my machine.
good luck to u and your new lexus.
in closing we r living in perlious times.