The brokerages have to report the nature of transactions to the irs and the owner.
If it is not reflected as a wash sale then it is not. Given then very different tax structure this are sufficiently different.
No one should delude themselves about the power of the IRS computers. If you report something different than what the broker submitted it will be flagged.
Recent Change Recent Price
Fund/Ticker Price vs. IPO NAV* vs. NAV
Cohen & Steers MLP Income & Energy Opportunity/MIE $16.80 -16% $18.88 -11%
Center Coast MLP & Infrastructure/CEN 16.78 -16 18.61 -10
Neuberger Berman MLP/NML 17.54 -12 19.27 -9
ClearBridge American Energy MLP/CBA 16.34 -18 17.71 -8
Goldman Sachs MLP Income Opportunity/GMZ 19.95 0 19.01 5
* NAV as of 12/10; MIE & NML NAV as of 12/5
Closing the books on some OLB babble for the year. These things were rushed out and sold at premiums to NAV. Laden with high expenses and complex structures.
The MLP story is intact, a multiyear story. What gives us this level of conviction is the visibility we have for MLPs to deliver attractive distribution growth, the main driver of returns," says Kyri Loupis, the head of energy and infrastructure investing at Goldman Sachs Asset Management, which launched a new MLP closed-end fund this month that's trading at a premium to its net asset value.
The Wall Street retail used car salesmen will often support closed end funds for sometime after the IPO. But eventual discounts to NAV come to reflect the high expense ratios.
Never buy a CFE at issue. Never pay NAV let alone a premium. Never listen to the product salesmen with an ignorance like the OLB. As posted here. Understanding and being trustworthy are necessary components of transmitting useful information.
Excellent money can be made from time to time on CEFs. Times of market dislocation and when the sectors is wildly out of favor. But this MLP stuff is a whole another level of complexity and risk which is not properly disclosed.
"Zhu Shanqing, who owns a yarn-spinning factory in Hangzhou in China's Zhejiang province, is struggling with rising costs for labor, energy and land. So he is boxing up some of his spindles and moving.
To South Carolina.
Mr. Zhu is one of a growing number of Asian textile manufacturers setting up production in the U.S. Southeast to save money as salaries, energy and other costs rise at home. His company, Keer Group Co., has agreed to invest $218 million to build a factory in unincorporated Lancaster County, not far from Charlotte, N.C. The new plant will pay half as much as Mr. Zhu does for electricity in China and get local government support, he says. Keer expects to create at least 500 jobs.
There is another benefit. As costs continue to increase in China, Keer can ship yarn to manufacturers in Central America, which, unlike companies in China, can send finished clothes duty-free to the U.S."
Where efficiency can be achieved business will execute on it. Progressives claim they will make up politically artificially higher energy prices in efficiency. They may even believe this in their delusions. But once the delusion breaks, it is the higher costs and lower economic activity they happily settle for.
Eventually American natural gas will sell in relationship to world energy prices. This window to draw back manufacturing and the power of local incumbency will decline. It is also why responsible economic policy diversifies our electricity generation base. In fact mature responsible diversification in the generation base provides the surety to encourage manufacturing investment here at home.
Progressive collectivism has always failed. Obama, Reid and Pelosi is just the current generational outbreak. It is the hubris the believers in this primitive philosophy hold which insures failure.
It is no accident that the OLB is always claiming diversification is unnecessary. Hubris and ignorance are identical twins.
It is our responsibility fellow Americans.
"Wages for production workers in Clyde, typically around $18 to $19 an hour, are roughly five times higher than in Monterrey. But Mr. Durham said the shift should lower costs overall. The Clyde plant is more automated and electricity costs are much lower than in Monterrey, he said. Whirlpool 500238.BY +2.12% also expects to save on transportation because the products won't have to be shipped across a border before going into the company's North American distribution network."
Direct labor cost is a smaller and smaller portion of the bill of material. It will continue to decline. Manufacturing cycle times are becoming stunningly short. It is the input into the factor across the supply chain which creates the jobs.
Energy cost, regulation and taxation are now the critical elements.
The truth is we are back to Henry Ford again. It is better to pay associates very well in high value added activities. You want and need them motivated and dedicated. Plus Americans do respect American companies who treat fellow Americans well. Costco and the return of Orange at Home Depot. Costco can make it happen.
Yes America has proven with our natural gas we can reduce co2 and pollution more than any one thought was possible. In fact our nuke plants are very safe and the primary threat is spent fuel Harry Reid has forced to remain on site. Our modern coal plants are clean as well. However, if one believes in Global Warming the only thing which will change the equation is America inventing new technology which is economically viable. We all see what happened in China when Obama abused our law and the EPA to make coal artificially cheap on world markets.
A diversified electrical generation grid is simply mature and responsible diversification. Obama forcing our grid to become destabilized while dishonestly hiding increasing costs will yield the same results as Germany best case and Spain worst case.
Obama needs some wisdom. Every one please pray for him this Christmas.
All the Opies -
Take a break for a couple of weeks. It is not a time of schemes for strife spoken in temulency.
Looking forward to reunion appearances on Oliver's and Jon's show next year.
It was a very well done tribute show, which was deserved.
Thank you. Management just has to execute on the integration and assets. 2013 was a disaster but that was one bad year in a long history of success.
I will not go to the double. But I would agree LINE may see something in the Permian assets which is not recognized by the market.
HOUSTON (ICIS)--US spot ethane prices at the Mont Belvieu hub in Texas rose to a six-month high on Tuesday.
Ethane spot prices were assessed at 28.00 cents/gal, the highest price since the week ending 24 May, when prices hit a high of 28.50 cents/gal.
So this along with propane makes me think 1.1 at the high end of guidance is not unreasonable. Open question is how the extremely cold weather might have slowed production.
So if 1.1 base add 10bps oil acquisition and 10bps on BRY we are looking at coverage around 1.3. Before the 'capital efficiency' improves on the better margins oil is offering.
Certainly LNCO with a 10% tax sheltered yield is not priced for a 1.3 coverage ratio which should logically improve.
As you noted if the Hogshooter OK wells are slowed in favor of other opportunities it is telling us something. ;)
Good fortune to us both.
great post. I would like to add that when the Hugoton deal was done the natural gas market was in fairly shape contango. So LINE did reduce risk and lock in higher than spot prices.
It is strange but this perfectly timed acquisition along with the prescient hedging became the pointing end of a short attack. Which sadly was effective with the support of Barron's and the SEC.
Also we are witnessing a return to what had been seasonal pricing differentials. When these acquisitions were made the surfeit was so great even cold weather did not move ngas prices.
The real wretch here was always ngl prices. I see propane is currently up above $1.30 a gallon. UP from $0.86 a gallon on that nasty second quarter.
We can fault management for getting caught in the ngl bubble. But very little else.
Also, natural gas export is now rushing to completion. It should begin to be reflected in futures market soon. This market is responding to incremental gas demand.
I was wondering what the OLB was doing for Winter Solstice.
The empty beer can festivist pole maliciously placed next to a Nativity display did not keep the occult Progressive pagans busy enough, I must assume. Jon Stewart found it very funny and so did his audience to gaze upon the phantasm of negative emotions on display.
Interesting assumption the secular human material nihilists have about being the most tolerant and caring.
Right up their with magic investment theories of personal power.
Actually odds are this is a great opportunity to buy LNCO at a nice intrinsic discount.
The ability of LINE management to guide 'DCF' above 1 means this is not a broken company. The BRY deal was a bit rich. Still as we see with the debt rating upgrade the distribution coverage is fortified.
As Sand points out Permian assets are very likely an undervalued asset.
What energy demand needs more than anything is a real American economic recovery pulling the world along. Obama will have to retire in a few years. It would be great for our investments if Reid is swept into retirement in 2014.
In which case the future for LINE would look very bright.
Oh what has Germany gain for the Global Warming religion? Their emissions are up as coal plants have to backstop the delusions alternative variable sources. The power grid is becoming increasing unstable. The coal plants which are best suited to base load have to be fired up and down. Inefficient and much more easily avoidable pollution.
Then yell at us we are not doing enough as our emissions are down. Crazy collectivists.
Critical take away
"The change allowed "substantial margin improvements," BASF said. When the conversion began operation in May naphtha cost about $100 for a barrel of oil equivalent, compared with about $30 for an equivalent amount of ethane."
"Germany's push to phase out nuclear for renewable energy has lifted electricity prices this year to 14.87 euro cents a kilowatt hour, about twice the price in some parts of Texas."
The Progressive lie that it can all be made up with efficiency is two parts their irrational religion and dissembling as they are saving the planet.
As large as these investments in American are, they are not nearly enough to absorb the tidal wave of ethane we are producing.
There is absolutely nothing wrong with large modern coal plants in America. If global warming is true, which observation shows is now very unlikely and even less likely to be significant, only economically viable clean technology which can be transferred to Asia is critical.
But the corrupt and lawless Obama regime has empowered the dishonest EPA to impose standards which are economically impossible. Which of course is breaking the law they are claiming to enforce.
Thanks to the Providence of clean natural gas America can add to the massive reductions in CO2 we have already achieved. We should own every value added energy and chemical manufacturing plant in the world. It will also be done with less pollution than anywhere else in the world.
Instead we are allowing religious delusions of Progressive to be imposed as the state religion for wholly defective and wildly polluting political corruption like corn ethanol
It is insane to be exporting light clean shale oil, natural gas, ethane and propane so the Progressives can have their bird chopping wind mills and corn ethanol state religion.
A example of BASF's new U.S. investments is its 60/40 joint venture with Total Petrochemicals & Refining USA, which produces chemical building blocks at a plant in Port Arthur, Texas. This year, it converted a steam cracker, which can produce as much as 935,000 metric tons of ethylene a year, to use a natural-gas feedstock, ethane, instead of an oil, naphtha.
The change allowed "substantial margin improvements," BASF said. When the conversion began operation in May naphtha cost about $100 for a barrel of oil equivalent, compared with about $30 for an equivalent amount of ethane.
BASF, which last year posted revenue of €72.1 billion, is deeply tied to Germany's Rhine River chemicals industry. Its town-size complex in Ludwigshafen is a sprawling web of twisted pipe, steam-belching cookers, distillation towers, specialty plants and laboratories that would span the length of New York's Broadway and fill much of midtown and lower Manhattan.
The centerpiece of the site is its steam cracker, a goliath the size of 14 football fields that distills oil and gas into component parts, especially commodity chemicals such as ethylene and propylene. These building blocks go into chemical derivatives used to make products as diverse as foam for insulation, padding for car seats, chewing gum, perfume, plastic wrap, pesticides and high-tech coatings for automobiles.
BASF first went on a shopping spree to gain scale in the U.S. and in specialty-chemical markets a decade ago. BASF acquired automotive-catalyst maker Engelhard Corp. in 2006 for $5 billion, forming the bulk of the company's U.S. business at the time, and Degussa AG's construction chemicals business for €2.7 billion. In 2009, BASF acquired Swiss rival Ciba Holding AG for 6.1 billion Swiss francs ($6.9 billion).
"That helped us to grow in the U.S.," Mr. Engel said. Its U.S. sales have doubled in the past decade and may grow at least 5% a year through 2020 without acquisitions, he said.
Among its newer investments is a U.S. formic-acid plant to supply its businesses in North and South America. The investment "might not have happened would we have natural-gas prices of $10 or more," said Mr. Engel. The plant will replace imports from Europe and Asia.
Next up: BASF is considering a new ammonia plant in the U.S. in a joint venture with Norway's Yara International AS YAR.OS -3.71% A. The plant, considered for the U.S. Gulf Coast, would produce ammonia for BASF.
"It is basically a make-or-buy decision for us," said Mr. Engel. "We would replace buying ammonia in the market and paying the usual margin."
The U.S. is also more conducive to developing new growth industries. Last year, BASF moved its global headquarters for plant biotechnology from Germany to Raleigh, N.C., because of restrictions on biotech research and public opposition to the technology in Germany.
LUDWIGSHAFEN, Germany— BASF SE, BAS.XE +0.50% a nearly 150-year-old German company whose operations sprawl across this Rhine River city, is shifting more of its production and research investment to the U.S. to ride the nation's economic recovery and shale-gas boom.
The world's largest chemical maker by sales says the move is designed primarily to take advantage of America's cheaper energy and greater support for emerging biotechnology research. It comes amid a wave of U.S. investments by chemicals and fertilizer makers cashing in on its plentiful shale gas.
"At this point in time, the overall framework—if you consider all the factors including economic growth, the cost of raw materials and the cost of energy—is more favorable in the U.S. than in some European countries," said Hans-Ulrich Engel, BASF's group finance officer and chief executive of its North American division.
BASF has estimated it could save €500 million ($688 million) a year in energy costs if its massive chemicals plant here was instead in the U.S. The company isn't thinking of moving the 148-year-old operation abroad, but it is building up existing plants along the U.S. Gulf Coast and may launch new production there in coming years.
BASF has doubled its investment in its U.S. plants to an average $1 billion a year in 2012 from about $500 million a year in the decade to 2010. It also has earmarked about $4 billion in capital spending in the U.S. through 2017.
The lure: cheap electricity and natural-gas prices. Thanks to discoveries of shale-gas in Texas, North Dakota and Pennsylvania, the U.S. price of natural gas is about $4.30 a million British Thermal Units, about one-third of the price paid by German industry.
Germany's push to phase out nuclear for renewable energy has lifted electricity prices this year to 14.87 euro cents a kilowatt hour, about twice the price in some parts of Texas.
The U.S. economic rebound and cheap energy is luring new investment from businesses ranging from Egypt's Orascom Construction Industries SAE, which plans a $1.4 billion fertilizer plant in Iowa, to South Korea's Hankook Tire Co. 161390.SE +1.32% , which plans to break ground next year on its first U.S. factory, an $800 million investment in Tennessee.
New York, December 17, 2013 -- Moody's Investors Service upgraded the senior unsecured notes ratings of Linn Energy, LLC (LINE) to B1 from B2, the Corporate Family Rating (CFR) to Ba3 from B1 and Probability of Default Rating (PDR) to Ba3-PD from B1-PD. Moody's also affirmed LINE's SGL-3 Speculative Grade Liquidity Rating.
Good stuff from the merger.
Trading clearly is not efficient. But it would be rational and logical to return to parity. Premium would be a good reason to switch back.
The big winner for the mutual fund is now transformed into one of this years big losers.
Big year end reporting near.
As the actual LNCO float is small compared to the shares the funds will be getting for bry, it would not take a great deal for forward selling to move the current price.
It is a good time to add some LNCO, if you like Linn Energy.
I agree it is very unlikely this discount will persist beyond the New Year.
Hopefully we can put all this Obama SEC supported short attack in the past. The real open question for all American oil producers is the sharply backward oil market. Calls to export whole oil are being. A few splitters are coming on LINE but even this capital investment is lagging.
Further a surfeit of American light oil could put pressure on ngl prices.
Like everything there is nothing like a real economic recovery to firm energy demand. But given the weakness in the electricity trading markets, that is not now nor does the energy market see it in the next few years.