It's easy to see stock in ETE sinking... the WMB deal is a mess, and has bad implications.... but these are limited to ETE.
Not so easy to understand ETP going along for the ride. Other than guilt by association, the health of the parent should not be such a drag on the subordinate.
I'm not overly optimistic for ETP the next year or two, but I don't see the sky falling either. ETP is a major player in the oil transport industry with a long track record. It is not another Enron It will survive.
This is not a stock for traders... in and out in 30 days is not the way to play this one.
If you are a Cramer fan, you should not play in the MLP sandbox. If you are in the market for way-above-average dividends/distributions/yield on investment, and if you can stand capital risk, then MLPs are a worthy candidate. No telling how this will play out in ten or more years. I am not happy with results in the last twelve months, but I don't believe that it is time to stampede toward the exits.
Just my opinion, but there is an advisory service named Valuentum.
In the recent past, they have put out some really negative reports on the entire MLP field. It happens to coincide with severe down days for the entire MLP universe. I don't know if these guy are a mouthpiece for the shorts or if they have altruistic motives. In either case, the correlation is there. Maybe there is a causal effect here?
I am as worried as anyone else. These are supposed to be low volatility investments - relatively safe (as far as stocks can be, anyway.)
I've been in MLP's for over twenty years... have not seen this before. Worried - but still holding my positions.
Interesting numbers you mention here... have not heard that social program cost before. Do you remember where to read up on this?
Footnoter - I had an impression that they were not allowed to buy it back on the open market, and were required to call it at par if they wanted to redeem. This would keep a bad actor from issuing Pfd, driving the company into the ground, and buying back on the cheap. Am I wrong here?
Books on human behavior describe an event like this as capitulation. The weak hands have lost their nerve - there's blood in the streets - and only the long-term owners stick around.
All MLP's are up big-time today. Let's hope it holds.