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$TLP

As This Country Gets Her Pipeline Game On, Watch Out For TLP

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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