10/17/14: Upstream No Place to Be; Sell ARP, VNR

By Igor Greenwald • October 17, 2014

Portfolio Action Summary

Atlas Resource Partners (NYSE: ARP) downgraded to Sell in the Aggressive Portfolio
Vanguard Natural Resources (NASDAQ: VNR) downgraded to Sell in the Aggressive Portfolio

MLP Profits is recommending the sale of its last two upstream MLP portfolio picks given the heightened risk from high leverage and lower energy prices. For more information, see the Portfolio Update in the October issue.

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EdwardM

10/17/14 ‐ 1:03pm ET October 17, 2014 at 1:03pm ET

Sale of VNR andARP says check portfolio update. Maybe I missed something but what page is it on the new issue? Also usually each area of the issue is noted on home page now just one topic and find second info area at the end of it. I am confused. I own both sales units so what to read on reasoning. Then have to evaluate the tax bite as we have talked about before due to the recapture and capital gains accounting. Ed M

Igor Greenwald

10/17/14 ‐ 2:34pm ET October 17, 2014 at 2:34pm ET

The Portfolio Update is going up this afternoon, sorry for any confusion and thanks yet again for your patience. I have no new news on either partnership, just think risk is materially up for both, and their balance sheets and bottom lines don’t thrill.

LouisB

01/09/15 ‐ 11:05am ET January 9, 2015 at 11:05am ET

you are listing vnr a sell in the aggressive portfolio but when I look into this portfolio it not listed as a sell!!!!

Igor Greenwald

01/09/15 ‐ 12:38pm ET January 9, 2015 at 12:38pm ET

We sold it in October and then bought it back for less last month. Here are some newer links you may find helpful:
http://www.investingdaily.com/mlp-profits/articles/21744/the-nicest-yields-in-hell/
http://www.investingdaily.com/mlp-profits/articles/21659/searching-for-value-in-the-upstream-mlps-2/

Michael Dunn

06/07/15 ‐ 8:51am ET June 7, 2015 at 8:51am ET

Igor,
Any recent thoughts on ARP Just noticed the Dividend was way up at current price.
Mike D.

Igor Greenwald

06/11/15 ‐ 8:39pm ET June 11, 2015 at 8:39pm ET

They’re “yielding” 18% now and yet they sold units last month to buy more properties. What that should tell you is that they’ll be selling more units soon enough to buy something else to cover the distributions on the units they sold last month. Avoid. There are much better natural gas drillers out there, starting with MLP Profits recommendation EQT. The Energy Strategist also recommends Cabot (COG) and Peyto (PEYUF). They’re not MLPs like ARP, but they’re not shell games either.

Mr. Ed, The Talking Horse

06/10/15 ‐ 10:04am ET June 10, 2015 at 10:04am ET

Igor, Robert, any reaction/advice regarding price weakness and downgrade (DB) of CPLP? Thank you.

Igor Greenwald

06/11/15 ‐ 7:48pm ET June 11, 2015 at 7:48pm ET

The downgrade was from May 1, an the subsequent slide may share the analyst’s disappointment with the implied slow rate of distribution growth when they increased it just prior. But it’s a no-doubt Best Buy for me with a well-covered 11% yield in a strong products tanker market that should keep getting stronger. I’ve seen no news in the last month and no fundamental developments challenging that theory.

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