Comments for MLP HINDSight

Comment on Winners & Losers: All Quiet on MLP Front by hh

hh — Tue, 21 Feb 2012 19:13:54 +0000

Thanks for the comment, I’ll try to incorporate more distribution coverage and distribution CAGRs and stuff. I do that periodically, but for these weekly updates, what changes is the prices of MLPs, and I think I do ok at breaking down who were the biggest movers in a given week with some commentary on why that might be and what it might mean. Also, to be fair, Y. Siegel gets paid to put out research…

Comment on Winners & Losers: All Quiet on MLP Front by mb

mb — Tue, 21 Feb 2012 15:49:00 +0000

Just found this site. My only comment as I have been following mlp’s for 15 years is that when you include every mlp in your charts that you confuse the focus. I would love to see charts on coverage-charts on total return-cagr-capex. etc the real fundamentals of mlp’s. Y. Siegel and excellent review about 2-3X a month for Credit Suisse.. Well Fargo and BAC also comment on their coverage. Although I don’t feel you do a bad job, todays wmb wpz announcement while not major is a trend. I would love to see you do a time by month analysis of project completetions by individual mlp,s Epd slide 11 of last conference does a marvelous job of listing such. Keep up great work

Comment on Winners & Losers: MLPs Post Biggest Weekly Gain of 2012 by Ferguson keen to keep Berbatov | Manchester United Schedule and Fixtures

Ferguson keen to keep Berbatov | Manchester United Schedule and Fixtures — Sat, 18 Feb 2012 19:05:12 +0000

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Comment on Glossary of MLP Terms by MLPs Are at All-Time Highs Again | equities.com

MLPs Are at All-Time Highs Again | equities.com — Thu, 16 Feb 2012 18:03:27 +0000

[...] February 16, 2012 Acrophobia: MLPs at All-Time Highs Again Filed under: Energy,Expert Commentary,Technical Analysis,Trading — Hinds Howard @ 10:03 am var addthis_product = 'wpp-262'; var addthis_config = {"data_track_clickback":true,"data_track_addressbar":false};if (typeof(addthis_share) == "undefined"){ addthis_share = [];}At this location each week, look for my weekly thoughts on MLPs. This week’s initial column will focus on where the Alerian MLP Index is currently trading relative to its historical levels after 3 straight years of substantial outperforming the S&P 500. In future columns, I’ll build on that post to get into some of the minutia of the MLP sector and the deals that occur within the sector. For a general review of the language used in the sector, please visit our MLP glossary. [...]

Comment on MLP Ex-Dividend Dates Ex-amined by Mike

Mike — Thu, 09 Feb 2012 18:48:00 +0000

Interesting stuff as usual. I was not even aware of this.

For the past 4 years or so I have been occasionally picking up units using “stink bids”, which is setting limit orders at obscenely low prices then hoping they get filled in a flash crash or some sort of panic meltdown. This worked with great effect in early 2009. This past October I barely missed getting some more GLP units priced in the mid-teens during the frightened selloff that preceded their quarterly conference call. I admit this is more like gambling than investing, but my position in GLP is already pretty big and the limit order was small.

Comment on MLP Week Thoughts: More ProPAIN for NRGY Investors by Medica-Now.com

Medica-Now.com — Mon, 30 Jan 2012 00:02:37 +0000

A Month of Mornings Vol 2 (A Month of Mornings Series)…

Everyday poems. Meditations. One each morning.Literally. Continued from Vol One on the very next day of mornings.These short poems, written each day as I rose for the day, have surprised me with their day to day variance, that still keeps intact who I …

Comment on Week Thoughts: How Low Can Nat Gas Go? by Hinds Howard

Hinds Howard — Sun, 22 Jan 2012 05:18:00 +0000

Apologies to email subscribers who for some unknown reason received 30 copies of this post in their inboxes. It is really frustrating because I really try to be thoughtful around not spamming the email subscribers with posts constantly.

Comment on Weekly Winners and Losers: Natural Gas Deflating Fast by Mike Hasselbeck

Mike Hasselbeck — Sat, 14 Jan 2012 03:05:00 +0000

Contract compression services — EXLP, GSJK, and to some extent RGP — have not been getting much love in the last year or so.

Comment on Your MLP Tax Questions Unanswered by Hendricks

Hendricks — Fri, 13 Jan 2012 08:56:00 +0000

Nice summary, however it should be noted that the goal of most CEFs is to operate the C corp at a taxable loss so that the funds can pass through MLP distributions at close to, if not at, 100% return of capital. The “tax drag” is in the form of an accrued deferred tax liability that with appropriate portfolio management can be deferred indefinitely (it will come due, at least partially at some point in the future). Another benefit are that the passive activity loss rules do not apply to C corps, enabling them to better shield income.

Comment on Your MLP Tax Questions Unanswered by Mike Hasselbeck

Mike Hasselbeck — Wed, 11 Jan 2012 18:12:00 +0000

Closed-end funds vs direct MLP ownership

Pros:
- Diversification
- Expert active management (although many would argue this is a negative)
- Investors receive a single 1099 form instead of a bunch of K1s
- Can be held in an IRA without fear of UBTI
- Often have access to privately held equity unavailable to retail investors

Cons:
There will be a management fee and it can be steep. More important is that these funds are organized as C-Corps. That means they don’t have the pass-through tax efficiency of direct MLP ownership and must pay at the 35% corporate rate. This represents a significant drag on performance and would prevent them from meeting investor expectations for exposure to the MLP space. Their solution is to use leverage — essentially borrowing money to buy MLPs. The working assumption is that MLPs bought on margin will provide higher returns than the cost of borrowed money. This, of course, carries a significant risk. The CEFs are required by law to maintain a maximum debt:equity ratio. When this is exceeded, they will be forced to sell off holdings. This is exactly what happened during the panic selloff of 2008-2009. The MLP CEFs didn’t start the selloff, but they certainly contributed once the frenzy got going.