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ETP Meltdown - Sept Dividend Drill gets Spanked
turtle 09-18-2008, 5:48 PM | Post #2563876 |  1 Replies
0  

Energy Transfer Partners (ETP) the subject of September's Dividend Drill has dropped over 20% since Sept 4th. Yes, the market has had a tough 2 weeks, and the S&P500 is down 6% over the same time frame. ETP has not just underperformed, it's been spanked !

If you bought in at $43.12 (the Dividend Drill current price) you are now down $9.54 per share. That's 22.1% ... over 2.5 years worth of dividends.

Ther's no info in the Dividend Drill that would explain this meltdown. Anyone have any information?

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Re: ETP Meltdown - Sept Dividend Drill gets Spanked
ladamson 09-18-2008, 6:48 PM | Post #2563909
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turtle:

Anyone have any information?

 Per Citigroup Research: 

"* Sell-off Driven by Market Panic - Energy  Transfer  Partners,             
L.P. (ETP) is widely held by institutional  investors  some  of             
whom are under severe pressure  to  buffer  liquidity.  In  our             
view, the need for liquidity caused the sharp sell-off  in  ETP             
that we saw earlier today with units down as much as 15% at one             
point.                                                                      
* Volatility Creates Opportunity - While volatility  is  likely             
to continue as institutional investors are forced to  liquidate             
positions, the recent price decline has created an  opportunity             
to buy into one of the  most  compelling  stories  in  the  MLP             
space. We expect ETP to deliver  distribution  growth  of  9.4%             
over the next five years. "

Regards,

Lew

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