Big Seller Knocks NuStar Logistics Baby Bonds Lower-Updated

We just noticed NuStar Logistics Baby Bonds (NYSE:NSS) are getting hammered lower today by 70 centers as a big seller has apparently decided to dump shares.  We note numerous blocks of 5,000 to 10,000 shares crossing the tape.

We have reviewed news sources and find no new news on the company as of this moment.

Probably a good buying opportunity–but we have enough of it already.

UPDATED–after touching 24.60 shares, as expected, have rebounded to the 25.15 area.

14 thoughts on “Big Seller Knocks NuStar Logistics Baby Bonds Lower-Updated”

  1. NS and its 3 preferreds have been hammered for several days in a row, so just now catching up with NSS. I assume the smack down is related to yesterday’s article “Fitch Affirms NuStar Energy, LP at ‘BB’; Outlook Revised to Negative” which goes in to a lengthy discussion of the headwinds facing NS. However, this is nothing new since Moody’s wrote something similar in early Feb. In addition, sentiment towards MLP’s is very negative which doesn’t help matters.

  2. Hi Leonard–I guess the reasons are relatively well known–have to have these little panics I guess. I see after touching 24.60 it is back to 25.15.

  3. Yesterday, I noticed NS and the NS preferreds doing very poorly. So I sold off half my chunk of NSS at $25.42. It dropped later in the day. I swore to not buy anymore. Then ABRN got called last night, so I sold off part of my ABRN since it is dead anyways, and bought more NSS at $25.08 this morning at the golf course, when I noticed NSS was sinking but the common and preferreds were actually moving up. So I felt safe to buy back in.

  4. Hi was watching it live and around 24.60 I figured it was a good buy–but I am over a full position so no action for me. So it ends unchanged on the day.

    Now you are stuck with it again–but it goes ex later this month so a good capture move anyway.

    1. I sold just enough off yesterday to feel comfortable and then I pull this stunt and buy back more. At least I am still considerably below the amount I had yesterday, lol. I am just being a yield hog owning this. I have no love or trust for this issue. I may sell these as you mentioned after the interest payment.

      1. I hope you guys continue to watch this closely. NS is going to have to cut their dividend. I see no other alternative and that’s going to spill over to NSS. Would love to be wrong, and wish you guys the best. I’m staying out of this one. I’m not chasing yield on this one. NS did have a great day on Friday, but what didn’t with the DOW up 4xx points. EPD and MMP are the only MLP’s I trust, personally and even they are still struggling in varying ways but still have rock solid fundamentals.

        1. Im hanging on, but no love…They just cut the distribution of the common a few weeks ago. Possible is could happen again. That actually would be a good thing for NSS, as your not wasting cash handing it out to the lower cap stack. There are many many more preferreds more dangerous than NSS is, but that doesnt justify it as a sock drawer issue….Which it never will for me!
          I can understand your concern and avoidance that is for sure.

  5. NS getting kicked in the face again today. Very negative ruling by FERC on MLP’s recovering certain costs.

    NS down over 7% as I write this.

    NSS holding up thus far, but down a little on the day so far.

  6. Hi GW–I see it is falling off a bit now on a number of 100, 200 and even 60 shares trades. Nervous nellies apparently.

    1. Hey Tim,

      If you don’t mind sharing, what tool(s) do you use to watch such small numbers of shares trading hands?

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