Investors ‘Jockeying’ for Position in MLPs

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It is interesting to now watch the MLP’s as investors jockey for position–up 2% today–down 3% tomorrow and so on.  In particular the upstream players–Brietburn (ticker:BBEP), Linn Energy (ticker:LINE), Linnco (ticker:LNCO), Mid-Con Energy (ticker:MCEP), Memorial Production Partners (ticker:MEMP) as well as others.

What this says to us is folks are ‘bottom fishing’–and some day traders may be scalping a quarter here and there.

Honestly if we were younger and looking to take a ‘flyer’ right now we would be doing some dollar cost averaging of purchases of some of these names (LINE, LNCO and MEMP) fully expecting a distribution cut in the next 6 months.  It would seem that a potential 100% return may warrant the risk.  But we are not young and not looking to risk capital even though the upside may well be 100% in the next year.


For those fitting the demographics the time for an initial starting position may be here.

Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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