Buy Tesoro Logistics Partners (NYSE: TLPP)
I have been watching Tesoro Logistics Partners (NYSE: TLLP) for several months, waiting for a specific trade entry point set up to materialize. Over the last few weeks several events have occurred to drive down the unit price from over $70 to around $56. Several of these events are actually positive for the TLLP medium term prospects. I will cover the specific triggers for this trade in detail in the regular monthly newsletter coming out next week, but with today’s opening price drop, the deal is too good to wait on.
Recommendation: Buy TLLP up to $58. This will be a longer term position with an expected holding period of 6 to 9 months. We are looking for a total return of about 50%.