Market(ETP)

I know there's a few on here who have or have owned ETP so I thought I'd share, heck you all may already know. Sunoco logistics (which ETP owns about 20% of) is buying ETP and it looks like a pretty shitty deal, ETP and SXL are both down about 10% this morning.

"..Under the terms of the transaction, ETP unitholders will receive 1.5 common units of SXL for each common unit of ETP they own. This equates to a 10% premium to the volume weighted average pricing of ETP’s common units for the last 30 trading days immediately prior to the announcement of the transaction.

As SXL will be the acquiring entity, the existing incentive distribution rights provisions in the SXL partnership agreement will continue to be in effect, and Energy Transfer Equity, L.P. (ETE) will own the incentive distribution rights of SXL following the closing of the transaction. As part of this transaction, ETE has agreed to continue to provide all the incentive distribution right subsidies that are currently in effect with respect to both partnerships. The transaction is expected to be immediately accretive to SXL’s distributable cash flow per common unit and is also expected to allow the combined partnership to be in position to achieve near-term distribution increases in the low double digits and a more than 1.0x distribution coverage ratio.."



HMM, if divvy's stay the same SXL is currently having return of almost 8%. ETP was almost 12%. I might stick my toe in a little SXL this morning, I've done OK on on some beat down stocks lately. MCK really kicked butt, it went up almost 28 pt.s from low in a week and a hlaf, unfortunately I didn't buy much. Yea, a blind squirrel does find a nut on occasion.

Yeah I saw that. I own a small amount of ETP

I sold half my position last year but I still have a few hundred shares. Its been a roller coaster stock. Those pipeline MLP's were supposed to be stable income generators not tied to the price of oil. But I think that sales pitch presumed oil would never go below $45/barrel.

Not sure where it'll bottom out. I think the div. will still remain respectable but not anywhere the high payout ETP was paying. Pretty sneaky way to cut the div. w/o coming out saying tey were cutting it (which is never good for a stock). I remember KMI announced their cut and it tanked.

Rising interest rates are another headwind for all these MLP's. ETP's dividend rate might end up rising to its former level based upon a shrinking stock price.

Like I said, I bought some SXL might add some more after lunch. I'm really curious how this thing turns out

Roller coasters can be very scary but the only people that get hurt are the ones who try to get off mid-ride.

Very true. I have some things I'll not touch for at least another ten or fifteen yrs (couple core acct.s), barring any truly catastraphic conditions warrant a move or if it dives because of a short term miss or whatever, I'll add a little more. Then I have an account where I can trade from just because I love to do it. Gives me satisfaction reading and researching a stock and picking a winner, same as gambling and I equate the two as pretty similar. Plus it gives me somtething to do. Thing is, I think I have a much netter chance at trading than rolling dice. Of course there's a few complete turds over the years but that's how it goes sometimes. When that happens and I think it's an OK company, I'll end up buying more and sitting on it 'til it gets back to a sellable price. It's really paid off recently and will pay for a few upgrades to the home.