That's what just happened with my CAPS rating. According to CAPS, my capability as an `analyst' was worthless a week ago. In just a few trading days, however, I am back to all-star status and my individual stock ratings have more credibility in the database. I fail to see the logic in this or the value of the database it generates. My long-term sentiment on the MLP space has not changed one iota since I started here, yet the evolution of my CAPS score suggests I was an investment genius last year, then an idiot for not selling before the crash, then back to being a savvy analyst -- almost overnight. [more]
The crucial distinction between EBITDA and EPS is one of the biggest stumbling blocks to understanding MLPs. I see this problem come up all the time on MLP discussion boards and in CAPS pitches. MLPs get unfairly slammed as a result. [more]
That's what happened to my CAPS rating in the span of 5 trading days. My portfolio consists entirely of energy MLPs and this sector is clearly underperforming the market. But this portfolio is also relatively small -- I have zero inclination to load up on 200 names about which I know little to nothing. And I refuse to bank accuracy points or short penny stocks for the purpose of scoring. My precipitous drop has also ended my `All Star' status and evidently weakened my credibility as a contributor to the CAPS database. All in one week.
This post makes a quantitative analysis of two publicly traded general partners: Nu-Star Holdings (NSH) and Magellan Midstearm Holdings (MGG). The point is to show how important the incentive distribution rights (IDR) are for distribution growth at the general partner, which has been mentioned in my previous posts here. Now I'm going to put in some real world numbers and do the math to illustrate how the setups at these two partnerships affect leverage on distribution growth. [more]
It's looking more and more like the hedge funds are using the MLP sector (and God knows what else) as their personal playground. If they need cash to cover a margin call on a leveraged position somewhere else, you'd better hold onto the handrails. Prices can drop very fast, especially in the low market cap MLPs. [more]