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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (33135)	12/28/2008 6:22:45 PM
From: Spekulatius	of 78740

EEQ, BBEP, LINE - I am glad yyou like my pick. EEP/EEQ have some of the highest yield for non-commodity sensitive long haul pipeline MLP's. LINE and BBEP are fundamentally different - they are upstream MLP while EEQ/EEP is a pipeline MLP. As a matter of principle, i do not invest in upstream MLP or income trust. I believe those trust do not work with falling commodity prices mainly because they do not retain enough cash flow to keep their reserves the same - so what they do is issue new shares to make up for the shortfall. This works when commodity and shares prices but in down markets it does not. if the bear market last too long those MLP literally will run dry and be gone. On the other hands when pipes are laid, they are going to throw off mostly increasing (because of FERC tariff adjustments) cash flow for decades with little reinvestment.

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