Investors ‘Jockeying’ for Position in MLPs

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.