Breitburn Energy Partners LP fka BBEPQ

[Santa Barbara Broker]

I am guessing if you would like to buy BBEP low, the irrational fear built into this market segment may be giving you an opportunity around $5 to $5.50 again here soon. Management has stated several times in recent days that a reduction in credit limit by their lender in April is now both expected and very likely a given. They have stated the reduction will likely be to the current outstanding limit they have already tapped but will not affect their ability to run the company as normal. BBEP management is currently looking at all options including new capital sources and a possible equity/bond issue. Almost every analyst (even the incredibly dim and clueless ones) agree that the company is securely hedged to weather oil at averages around $65 BBL through June 2016. There has been no indications whatsoever that a further dividend reduction is in play as a source of short term operating revenue.

Despite idiot analysts (using the exact same information BTW) having price targets spread from $5 to $15 with position recommendations from wildly optimistic 'buys' to end of the earth 'sells', the short camp hasn't really made a move on BBEP's volitility as yet. Recent trading volume and my best guess would indicate the general over-reaction of a Fed interest rate hike (which may be up to an entire half point in total throughout all of 2015...truly a reason to burn down your house, shoot the dog and commit suicide in desperate panic) and a flotilla of recent brain dead wanna-be boy-analyst bashing has inadvertently turned Breitburn into a day trading program vehicle. If it continues I will be back out until it is abandoned by the second to second parasitic scourge of close focus electronic program trading by the chump change crowd. The good news is that I won't need to be out long as commodity issue targeting is the ideal scenario for destroying uneducated short interest and moron day traders in a single session. I don't see BBEP testing the original intraday lows around $4.55, but focus program trading can change everything.