Atlas Pipeline Holdings, L.P. (NYSE:AHD)

Q: Chip, What do you see about atlas pipe? I have taken a big loss in the last month with the stock I own with them, and dont want to loss any more. Do you think it's going to come back to the $5.00 I bought it at, or should I get out before I loss it all? Thanks,


A:We cannot determine if Atlas is an appropriate investment for you – that is something only a financial adviser who understands your financial circumstances and risk profile can determine.  We can, however, offer you some insight as to the technical trading aspects of Atlas.  I assume you are referring to AHD, the master limited partnership and not APL.  With respect to AHD, we issued a Downtrend on 6/19 at $3.67 – just before it hit its 50-day moving average.  The company has trended slightly lower since, but still clinging to its 50-day moving average.  The $5 will be a difficult resistance level, since it was met with sellers last time it hit that level in early June, absent some catalytic news event which we cannot foresee at this time.  Atlas will be highly susceptible to the near term price of oil and you should research its various hedge levels to see at what price of oil Atlas can make enough money to cover distributions.  The company also recently sold some assets to repay debt.  These events may have an impact on the near-term trading and should be watched.