Close Position in Eagle Rock Energy Partners
Today I am recommending that subscribers close the open position in Eagle Rock Energy Partners LP (Nasdaq:EROC). We have made a nice gain, but the unit price has stagnated even as crude oil continues to move higher.
I recommended an entry in EROC on January 28 at $2.28 per unit. The price is now at $2.58 and a $0.07 distribution has been earned. The result will be a mid-teens gain in about two months. With the price action after the EROC 2015 first quarter earnings release, I do not see the unit price continuing higher towards the initial $3.00 target. The market seems happy to keep EROC at a 10.8% to 11% yield, so we will be happy to take a nice short term profit.
EROC goes ex-dividend on Wednesday, May 6.
Recommendations: Sell EROC today, May 5 at a price of $2.54 or better.