Breitburn Energy Partners LP fka BBEPQ

[Ripcord01]

I'm not calling a bottom at this point but I definitely think this stock is in the zone for investment.

The management of this company has already proven they can navigate the low oil price environment. They currently have hedges out to 2017. The prudently cut the dividend as they did during the last crisis.

I think this stock price will react to the current price of oil until a few earnings releases occur to show that management is handling the current environment successfully.

I am long BBEP and have tripled my position during this decline. I am looking to add more if this stock dips further in price.

Why do I think there is a bullish case? Its all about the oil transports (aka tankers)

The day rates for tankers are skyrocketing at the moment because of the demand to ship oil at these prices. However, the hidden story is that many of these tankers are being used as floating storage by companies. This is important because when tankers are used as floating storage and not delivery fuel the amount of fuel that can be transported will go down. Also, 2015 is the year there was supposed to be just enough tankers to cover the world's demand for oil. So when you have enough tankers out of transporting there wont be enough capacity to transport all this oil that is being produced. Shortages will happen because there isnt enough capacity to ship the oil. Eventually, the members of OPEC will have to shut off the tap because they wont have enough storage for the oil they are producing and they will buy tankers to store oil too....that is when oil will go up. Because everyone will hold the tankers full of fuel hostage until the price of oil goes up. Oh..because oil is currently cheap the demand for oil will go up too...so we will hit new highs in the price of oil probably within 2 years.