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Earlier on Sunday, iBankCoin Financial News reported that Kinder Morgan Energy Partners paid a sizable premium to buy El Paso Corporation in a massive $38 Billion deal. Over the past several months, I noted here and here of the strong relative technical performance of the oil and gas pipeline plays. When you combine the persistent underlying bid to the group as a whole, on top of the now legitimate consolidation taking place in a major way, it is hard not to look at other viable pipeline plays. You are talking about huge dividend yields and a lower beta way to play energy than watching ATPG swing 50% every few days.
Below, note how orderly the weekly charts are, as the pipelines plays have worked through a multi-month consolidation, particularly in comparison to the huge volatility taking place in the broad market since the summer. If you are looking for pin action off the El Paso news as the sharks circle the pipeline plays, then I am most impressed with BPL MMP SXL (the latter after a consolidation).
Members of The PPT and 12631 click here to view the entire group sorted by PPT Hybrid Score.
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Nice shark.
I like WES
Nice pipes.
NFG is cheap if natty has indeed bottommed