JP Energy Partners LP (JPEP)

[jugs]

Going out on a limb here---I'm projecting we'll hit and exceed the $5 threshold tomorrow. And if not tomorrow? Monday will be the day.

Many companies---mutual funds and retirement associations in particular---are not permitted to invest capital in companies sporting valuations NOT in excess of $5. Thus, when a publicly traded company can boast a unit or share price of something above $5, it then becomes available to many institutions for investment purposes. And so it is that fresh capital may find its way into our company. This is the reason for companies going public in the first place, of course---to attract a wider audience prepared to invest and grow the company.

With just 18.5 million shares (units) in play here, there's ample room for an accelerating unit price---unless the company initiates a secondary offering leading to dilution. There's been no such announcement, however, so let's not go there. (shudder, shudder!) I mention this as it's clear the unit can move quickly and easily.

Over the past 52 weeks, JPEP has traveled a range in price from a low of $2.62 to a high of $15.52. That's enough to curdle milk still in Elsie the cow. There's a couple of take-aways, though, and they're worth noting:

1. We're close enough to twice the value of the 52 week bottom to sense things are improving a bit, stabilizing and not worsening.

2. While some might point to our current valuation as being that of about a third of the 52 week high, we might also consider that earlier valuations may set the tone for recapitulation as in whenever oil decides to begin its ascent to formerly loftier price points. I realize this is akin to acknowledging that the glass is half full versus half empty but there is something to be said for history tending to repeat itself when it comes to the oil sector.

We are nimble, we are quick and while my name isn't Jack I usually jump over the candlestick before things wax ineloquently with pain attached. So we ride the wave of positive fundamentals and dream.