The entire sector was weak. My guess is anything related to energy was killed today thanks to Exxon and Chevron. MLPs are the babies thrown out with the bath water. Especially after most of them have come out and announced INCREASES in distributions this year and next! Hang in there - this thing should be 20%+ higher on fundamentals.
Based on the recent action, I smell a big earnings miss coming. If I were you I would buy some Aug puts to cover rest of your capital.
All my research shows EPD to be one of the premiere MLPs. Curiously today, All MLPs started poorly but are now catching bids, except EPD. No news. Is there something I missed?
WMB will get another bid from ETE or other MLP/multi-national. That's why WMB decided to suspend purchase of WPZ. So WMB wants to be bought. Buy WMB.
Agree. GSK just broke through the 50 DMA for the first time in months. Very bullish short term with no meaningful resistance until about $47.
Just goes toward investor ignorance on the MLP valuation and performance. Earnings can be up or down due to controllable spending, depreciation of assets, revenue recognition rules, etc., but cash flow is the ultimate king for MLPs. Also, I think today all MLPs suffered, including the A-listed ones such as EPD, because a far inferior one cut its divvy - namely LINE. EPD will be $35+ in weeks.
If NFLX or AMZN had the exact earnings release, they would be up 25% AH. Such is the power of manipulation by Wall St powers to be. Don't try and play their game, there is no rhyme or reason that you will find. LNKD earnings report had holes but none greater than PE of 180 like AMZN or spending through the roof for NFLX. LNKD beat top and bottom and raised guidance! If a certain Mex Restaurant chain did this, its stock would shoot higher.
Good call. This thing is up big AH but it's still dirt cheap compared to NFLX, CMG and AMZN. If on same basis, LNKD should be $400+ per share.
As with any industry there are good and bad companies. LINE is obviously a bad one. Try one of the good ones who have recently increased their dividends like ETE, EPD, MMP, KMI or PAA. Those look like are being dragged down today. Great buying opp.
And WMB is up AH. If you could use your brain you would realize that with MLPs, the earnings are not as important as FCF and dividends. WMB has shown strong FCF and affirmed it's divvy. Also, ETE bid $64 for it a month ago which was too low per WMB mgmt. Perhaps you know more about their business than their management or ETE, but I rather think WMB and KMI are just way too cheap here by their traditional metric which is investor distributions. By the way, KMI has affirmed 10% increase in their divvy each year through 2020! That's why KMI will be at $50 within months.
ESV is best in industry with lowest debt and great management. I think it's the "safest" driller to own. Do your own DD but if you ask me the entire sector is oversold and will come back once oil comes back. Oil should bounce this year as the Saudi's are leaking info about cutting production by end of summer.
Agree skinz. EPD has had a nice bounce from their recent lows. But lets not forget only a few weeks ago it was trading north of $34. And NOTHING has fundamentally changed with EPD.
Why? WMB is worth what others are willing to pay for it. There's already an offer of $64 ps(albeit a little lower because of short-term sell off of ETE). If ETE really wants this asset as much as they say they are, there will be a further push to bid on this. Also, WMB has essentially announced it is for sale!!