ajm101 (39.78)

Update on MMLP, good news on sulfur division

May 08, 2008 – Comments (0) | RELATED TICKERS: MMLP

Well my investment in the sulfuric acid theme appears to be on track: MMLP reported earnings yesterday, and the sulfur division's revenue increased year-over-year by almost 150% and gross margins for that division increased from about 26% to 34%.

Remember, processing fertilizer and copper ore requires sulfuric acid.  Since it's found in crude/gas/coal, I'm sure there's more supply to be had, but that will require special transportation infrastructure and production plants, which won't happen immediately.

The bad news is that it's not a pure play, and even with the increase in business sulfur is just 22% of total revenues.  But the 8% yield supported by the pipeline/transportation/storage businesses eases the pain :)