Shipping MLPs

A

A.J. Sutton

This is a very beaten-down sector, with many companies in serious trouble. However eventually it will turn. I mean tankers, container ships, bulkers, LNG tankers. There are many MLPs and also MLPs that report via 1099s, so are appropriate for IRAs (which standard K-1 MLPs are not).

I am in CMRE, CPLP, DHT, DLNG, EURN, GMLP, GSL, NAP, OSG, TNK. Most are high yielders, subject, however, to cuts of course should things get worse... which they probably will for some period. Several of these have already cut, so hopefully the bad news is behind them. There is a reason they are cheap vs. the 12 month high/lows. Like all the MLPs, they have been well and truly kicked.

Is anybody else in these things?
 
I looked at some awhile back but was afraid they still had more downside. I'm sure it will make a comeback at some point. Just like on the bankruptcies thread, I'm going to look into this more later and hopefully come back with a better response and maybe get some ideas going.
 
A.J. Sutton said:
This is a very beaten-down sector, with many companies in serious trouble. However eventually it will turn. I mean tankers, container ships, bulkers, LNG tankers. There are many MLPs and also MLPs that report via 1099s, so are appropriate for IRAs (which standard K-1 MLPs are not).

I am in CMRE, CPLP, DHT, DLNG, EURN, GMLP, GSL, NAP, OSG, TNK. Most are high yielders, subject, however, to cuts of course should things get worse... which they probably will for some period. Several of these have already cut, so hopefully the bad news is behind them. There is a reason they are cheap vs. the 12 month high/lows. Like all the MLPs, they have been well and truly kicked.

Is anybody else in these things?
More...

I have been in NAT from $9 up to $14.87 but have been out for about 6 months or more now. I loved the capital appreciTion and the GREAT dividends. However, my personal opinion about the ones you have positions in are that they are still in a strong downtrend. Many of these are also low priced (<$7) and have VERY low volume of < 150,00-200,000 shares traded a day. If you want to get out of these you will struggle to find a buyer meaning more losses when you have to take whatever price is offered. Not flaming you but you seem to be making many rookie mistakes. Why would you need to be in so many of the same type of stocks. Do you know what correlated trades are? Again, not flaming you just pointing out that you don't even have any diversification unless you have many other trades your not listing.....but why trade in 10 of the same type of stock? If they were all giant winners I could kinda understand but they are all flaming losers. Lastly, you said "...hopefully the bad news is behind them." There is NO room for hope in this game. You plan a trade and then trade the plan. It looks like your trades have no plan other than hope. I am not trying to be negative here just don't want you to suffer needlessly. (I know I did this kind of stuff in the beginning) You really should not be trading until you have a firmer grasp of how to pick trades, when to get in, and MOST important when to get out.

Do yourself a favor and get out of your positions, watch them from the sidelines if you want. Try to develop a rhyme and reason to be in a trade and paper trade until you prove you can do it. Go back in time and try your ideas on the data available and see if your system works. Continue developing and paper trading. Read, learn, test,,......rinse, lather, repeat.

Good luck.
 
A.J. Sutton said:
This is a very beaten-down sector, with many companies in serious trouble. However eventually it will turn. I mean tankers, container ships, bulkers, LNG tankers. There are many MLPs and also MLPs that report via 1099s, so are appropriate for IRAs (which standard K-1 MLPs are not).

I am in CMRE, CPLP, DHT, DLNG, EURN, GMLP, GSL, NAP, OSG, TNK. Most are high yielders, subject, however, to cuts of course should things get worse... which they probably will for some period. Several of these have already cut, so hopefully the bad news is behind them. There is a reason they are cheap vs. the 12 month high/lows. Like all the MLPs, they have been well and truly kicked.

Is anybody else in these things?
More...

You have to have holding power, its a position trade at best.
 
A.J. Sutton said:
Several of these have already cut, so hopefully the bad news is behind them
More...
the bottom is in when dividends are eliminated entirely, when a major shipping co. collapses into bankruptcy and when the shipping industry makes the cover of business week. that doesn't say you can't have a major dead cat bounce in the interim.

lastly don't invest on hope.
 
FCXoptions said:
I looked at some awhile back but was afraid they still had more downside. I'm sure it will make a comeback at some point. Just like on the bankruptcies thread, I'm going to look into this more later and hopefully come back with a better response and maybe get some ideas going.
More...
what bankruptcies threads are you referring to?
 
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