It would appear the emotional flush occurred Wed 11/7
rlp - if the market totally tanks then you will be corect. Is that what you are suggesting? The only news from ETP for almost the next 3 months will be press releases of projects going into service. That should not cause it to move downward. You could also have a tax issue come up or a severe spike in interest rates, but that would destroy all MLPs. Don't know where you live but will but a Costco polish dog lunch you are wrong! Even if the makret destructs, ETP has a yield to protect the downside.
PLEASE share your reasoning.
You now also have brokers at 5 of the major brokerage houses that before now were not allowed to solicit orders for ETP (brokers are not allowed to solicit if their firm has a sell rating). This means MS, WF, Citi, CS, RBC all raised their ratings from a sell.
The market doesn't have to "totally tank" for ETP to go the $40 range. That's only 5% down from where it is now. The analysts ratings were lukewarm at best. ("Market Perform", "Equal Weight", etc.) Barclay's cut their recommendation, Moody's lowered their outlook to negative, Any continued weakness in the MLP sector and I think we could even go below $40 for a short time.
Thanks for your reply - CS raised it to a hold and also said it was near an outpreform. MS has a $50 target and $58 bull target. MS is not allowed to go from a sell to a buy. Ditto for BofA, Citi, WF and RBC. All had prior sells. Do not have access to Barclays. Spent a god portion of Friday discussing the metrics of ratings and the "rules". Was very suprised. Did know that is a given universe an analyist cannot raise one to a buy w/o lowering another.
If we have a 10% decline in the AMZ then ETP could go to $40. Again you still have at "interest rate" backstop. Hard to justify PAA at under 4% even with their earnings. Everyone eventually stumbles a bit, but ETP at almost 9%?
Regarding Moodys - New York, October 12, 2012 -- Moody's Investors Service affirmed the Baa3 rating for Energy Transfer Partners, L.P. (ETP) with a stable outlook. This affirmation follows the October 5, 2012 closing of ETP's $5.3 billion acquisition of Sunoco, Inc. (SUN) together with the March 26, 2012 closing of the acquisition of Southern Union Company (SUG) by ETP's general partner (GP) Energy Transfer Equity, L.P. (ETE), and the various transactions among these entities intended to accommodate these acquisitions.
SXL is on watch negative and ETE was downgraded. Not ETP.