I used to own TLP, and so I’m aware that this and similar businesses could be ground zero for any pipeline brought into operation. TLP runs a rail channeling business which primarily deals in chemicals and petroleum, and in the past I found a nice supply of internal documents from this partnership warning of the impact of an oil pipeline competing with them.
It’s incredible, but Morgan Stanley, who was one of the originators of the partnership and chief stakeholders, literally just closed a sale of their entire position to Russia’s Rosneft on December 20.
What immensely convenient timing, that they exited a position that could experience ranging disruption from the construction of a new pipeline just one month before a study is released that all but seals its construction…
Anyway, I’d keep an eye on TLP and not be surprised if it suddenly take a hit to PE multiples, as the realization dawns that their main terminal is about to be outbid.
If the partnership was still intact, I would possibly consider buying it after it corrects, because lateral movement of goods will still be necessary and TLP is in good position to hold that business. But honestly I personally don’t want to have close dealings with the Russians.
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These Guys always seem to know
whats in the “secret reports”.
Don’t fight the Fed or the establishment
Cain, any interest in CCJ around here? Thoughts on the disposal of their Bruce stake?
The companies energy production line of business was one of the only bright spots for them over the last three years, helping to stem to the bleeding.
Their disposal of Bruce Power should send a very clear message that the company believes uranium prices are going higher. Low uranium prices had enabled the power production side of the industry to increase profit margins.
Low prices and an abundance of unused product at Cameco’s fuel side of the business. This positions them for higher prices and plenty of external demand.
Which jives well with the message company execs have been delivering.
That’s how I am reading it.
Same here; the knee-jerk sell on the Bruce news seems overdone. CCJ produces some very high-quality research as well, and their most recent press release supports their prognostication and indicates they are comitted to further leveraging themselves to the price of U. I also read that Bruce is going to require some substantial capex over the next two years. That may have been an additional motivating factor at this juncture.
I wouldn’t read too much into the carnage in the stock price. It happened to coincide with the Bruce Power sale announcement, but the whole market took a beating.
Multiple comparisons problem, nothing more.
I wouldn’t have paid it any mind were it not for the fact that it was showing great relative strength throughout the week until the announcement. Of course my time horizon is multiple months out (and some even longer term), but I read the sale as good news.