24/7 Wall St. » BGH

This Month’s Biggest Index Gainers: Chinese Telecom, Chinese Solar, and Oil and Gas Stocks

247wallst — Fri, 02 Jul 2010 20:06:30 +0000

Despite the bearish market, three Tickerspy indexes which posted substantial gains over the last 30-day period. This month’s biggest index gainers are Chinese telecom, Chinese solar, and oil and gas pipeline stocks.

Chinese telecom stocks are up 6.5% in the past month. The best performing stocks in the sector are China Unicom (Hong Kong) Limited, (NYSE: CHU) up 13.1%, Chunghwa Telecom Co. Ltd., (NYSE: CHT) up 5.4%, and China Mobile Limited, (NYSE: CHL) up 5.4%.

Chinese solar stocks are up 6.4% in the past month. The best performing stocks in the sector are Yingli Green Energy Holding Co. Ltd., (NYSE: YGE) up 24.9%, ReneSola Ltd., (NYSE: SOL) up 16.4% and Trina Solar Ltd., (NYSE: TSL) up 12.8%.

Oil and gas pipeline stocks are up 5.8% in the past month. The best performing stocks in the sector are Buckeye GP Holdings L.P., (NYSE: BGH) up 26.5%, Copano Energy LLC, (NASDAQ: CPNO) up 12.4%, and Targa Resources Partners LP, (NYSE: NGLS)

-24/7 Wall St.

Filed under: Most Actives Tagged: BGH, CHL, CHT, CHU, CPNO, NGLS, SOL, TSL, YGE

Buckeye Offers More Units (BPL, BGH)

247wallst — Thu, 26 Mar 2009 14:17:59 +0000

Pipeline master limited partnership Buckeye Partners, L.P. (NYSE:BPL) is offering 2.6 million new common units at a price of $36.25/unit. The number of units offered was raised from an initial 2.35 million units.

Barclays Capital, Citi, J.P. Morgan, and Wachovia Securities are joint book-runners, and Deutsche Bank Securities is acting as co-manager of the offering. The underwriters have been granted an overallotment option of up to 390,000 units.

Buckeye plans to use the funds to “reduce the indebtedness outstanding under its revolving credit facility.” As might be expected, the company’s common units have dropped by nearly 5% so far this morning on very heavy volume for Buckeye units.

The general partner of Buckeye is owned by Buckeye GP Holdings L.P. (NYSE: BGH). Common units of Buckeye GP are essentially unchanged this morning, trading at $16.66/common unit.

Paul Ausick
March 26, 2009

Posted in Oil & Gas, Secondary Offering Tagged: BGH, BPL

Early Bird Analyst Downgrades (ADCT, ACL, AMMD, BGH, CNB, CNW, ERTS, FCX, NAT, OSG, PCU, STM)

247wallst — Thu, 23 Oct 2008 06:30:01 +0000

These are some of the top analyst downgrades we are seeing from Wall Street firms this Thursday morning with more than two hours to the open:

ADC Telecommunications (ADCT) Cut to Underweight from Overweight at JPMorgan.
Alcon (ACL) Cut to Neutral from Overweight at JPMorgan.
American Medical Systems (AMMD) Cut to Market Weight at Thomas Weisel.
Buckeye Group Holdings LP (BGH) Cut to Neutral at Goldman Sachs.
Colonial Bancgroup Inc. (CNB) Cut to Neutral at JPMorgan.
Con-Way,Iinc (CNW) Cut to Neutral at Baird.
Electronic Arts (ERTS) Cut to Sell at S&P Equity Research.
Freeport-McMoRan (FCX) Cut to Neutral from Buy at Goldman Sachs.
Nordic American Tanker (NAT) Cut to Neutral at JPMorgan.
Overseas Shipholding (OSG) Cut to Neutral at JPMorgan.
Souhern Copper (PCU) Cut to Sell at Goldman Sachs.
STMicroelectronics (STM) Cut to Hold at S&P Equity Research.

Jon C. Ogg
October 23, 2008

Posted in Analyst Calls Tagged: ACL, ADCT, AMMD, BGH, CNB, CNW, ERTS, FCX, NAT, OSG, PCU, STM

Energy Watch Part IV: Pipelines (DPM, BGH, APL, AHD, EPD, KMP)

247wallst — Tue, 19 Aug 2008 09:11:52 +0000

Just looking at the drop in price for common units of pipeline master limited partnerships could lead one to believe the midstream business is going to hell in a handbasket. DPC Midstream Partners (NYSE:DPM) is down 48% from its 52-week high, Buckeye GP Holdings (NYSE:BGH) is down 44%, Atlas Pipeline Partners (NYSE:APL) is down 32%, and Atlas Pipeline Holdings (NYSE:AHD) is down 30%. Even the two largest companies are lower — Enterprise Products Partners is down 12% and Kinder Morgan (NYSE:KMP) is off 6%.

This simple calculation, though, hides the financial power of theseoutfits. Let’s look at the Atlas companies as an example. AtlasPipeline reported a net loss of $279 million for the second quarter of2008. But, adjust the company’s revenues to eliminate an unrealizedloss on derivatives, and Atlas Pipeline earned a profit of nearly $30million on revenues of $457 million. The company distributed$0.96/common unit, an increase of more than 10% from the same period in2007.

That’s what investors look for in these limited partnerships–cashflow. As long as the pipeline companies throw off nice gobs of cash,everybody’s happy. However, in order to generate ever-increasingamounts of cash, the pipeline companies need to get bigger.Transportation rates are set by federal and state governments, and acompany’s profit is fixed by regulation. Pipeline companies use thisnice, steady, guaranteed income to grow.

In the last few years, low interest rates and easy credit have spurredinvestment in new and expansion pipeline systems. Now, however, tightercredit and higher interest rates could threaten some of the more highlyleveraged companies. Atlas Pipelines, for example, holds total debt ofnearly $1.3 billion, nearly equal to it’s market cap of $1.56 billion.The company’s current ratio is 0.76, not a confidence-building number.

There will come a point when financing becomes too costly, for pipelinecompanies like Atlas and others, and that will lead inevitably toconsolidation. The stronger companies, like Enterprise and KinderMorgan, could go on a shopping trip. Given the expected increasingstress on financial institutions in the next 12-18 months, pipelinecompanies with weak balance sheets could become an endangered species.

Paul Ausick
August 19, 2008