MLPs Breaking Out But More Questions

As we stated when we added exposure to the energy sector October 6 (see here), we’d be fools not to acknowledge the technical breakout in units of master limited partnerships the past few weeks. The group still has a long way to go to get back to “even,” but for the sake of retirees who are “DRIPping” into these equities, we sincerely hope some losses can be recuperated. Our experience tells us, however, that the road won’t be an easy one, but we are hoping chartists will be piling into units in the coming days. Fundamental investors may not be aware of this “technical” catalyst to come, but the breakout could be a big one. MLP investors have lost so … Read more

Black Gold! Crude Oil Prices Leap to ~$50

Key Takeaways: After being negative throughout much of the collapse in energy resource prices during 2014-2015, Valuentum has been market-neutral on the energy sector since October of last year, and the newsletter portfolios have participated in the bounce in energy shares from January 2016 via the Energy Select Sector SPDR (XLE). The Dividend Cushion ratio, which is a forward-looking cash-flow based metric of dividend health, flagged the risk of every dividend cut, without fail, in the Independent Oil & Gas industry in advance of the event: Anadarko (APC), Cenovus (CVE), Cimarex (XEC), Devon Energy (DVN), Noble Energy (NBL), and Range Resources (RRC). We’ll walk through the degree of capital cuts across the Independent Oil & Gas industry, the group’s efforts … Read more