weiwentg (98.29)

Other investment ideas: my favorite MLPs

May 22, 2010 – Comments (1) | RELATED TICKERS: EPE.DL , ETE

I've long been pounding the table on the strongest MLPs. This year, I was finally proven right, as they kept increasing their dividends and their stock prices rebounded sharply. However, many of them have moved sharply downward in this correction. I suspect, but obviously cannot prove, that it's a few big investment banks moving out. 

At this point, I still own ETE and EPE, and I trimmed my EPE position slightly because I was getting overweight there. I'm watching for opportunities - I would like to pick up Magellan Midstream at around $30 and Kinder Morgan (KMP or its S-corp twin KMR) at $45, but I don't think I'll get my wish. I would buy more EPE under $40. I'm still re-assessing ETE after its purchase of Regency's general partner, but my sense is that I would consider buying more under $28.  

There are no option strategies at this point that look better than buying the stock. I like to sell relatively short-tenor puts at a price where if I were put the stock, I would be buying it under my buy price. There are no such opportunities. I would consider buying calls over a year out, and more like 2 years out, but these aren't available. C'est la vie.