A Strong Finish

My business was conducted slowly, over the course of a three hour meeting, which began at high noon. After catching the open and seeing my positions getting shelled, I just assumed it as well.

However, upon my return, I’m glad to find this market has turned about face. And what’s more, I ran ahead, thanks to gains in TLP, AWK, and BG. It’s good to see my new work doing – well – work. I am absolutely jovial when in the right and I hope to stay that way.

A note on TLP: Transmontaigne Partners is now my largest position by value, with MGM coming in at a close second. My consolidation of NRP brings it in the running for third, at just barely larger allocations than AWK and BG.

But back to TLP. Although a remnant of my old positions, I am encouraged to keep it. The reasoning is simple, as TLP is a transportation company which situates itself throughout the United States. And, they specialize in shipping bulk commodities, especially volatile cargo, like what we find with petroleum products. So, it follows that increases in the price of commodities will give room for businesses like TLP to demand higher shipping rates.

Combine that with this: the U.S. is presently experiencing some of the worst weather on record. This means price increases accross the country in addition to what has transpired already. It also means local business, which would have otherwise supplied for that demand, is probably operating below capacity. Those price increases will therefore be tantalizing to distant businesses, who can make a killing compared to their own local markets.

And how will they get their products to said destinations?

Answer: TLP’s transportation lines.

So for the meantime, TLP stays on the books, as is. However, even though I want to keep it around, once it goes above $40, I’ll be scaling it back, similar as I did to NRP today.