Natural Gas pipelines and distribution report
Comment of the Day

July 22 2011

Commentary by Eoin Treacy

Natural Gas pipelines and distribution report

Thanks to a subscriber for this informative report from Morgan Stanley covering natural gas primarily from the perspective of distribution pipeline operators outside of the Master Limited Partnership sector. .

Eoin Treacy's view From the 2008 lows, pipeline operators had some of the most consistent uptrends anywhere, but the commonality which was such a feature of the sector began to break down a few months ago. This was particularly the case for MLPs such as Energy Transfer Partners. (Also see Comment of the Day on June 8th. Over the last six weeks a divergence has appeared between those experiencing a continued loss of uptrend consistency and those still exhibiting relative strength. For example Hugoton Royalty Trust and Enterprise Products Partners remain in consistent medium-term uptrends.

The shares mentioned in the above report appear to have more in common with the leaders. I have included them in this Performance Filter which will allow you to access the charts by clicking on the name. While some companies, notably Southwestern Energy, have accelerated higher, the majority remain in consistent medium-term uptrends and would need to take out their progressions of higher reaction lows to question medium-term upside potential.

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