Securities Lawyers Blog
The investment attorneys with Gana Weinstein LLP continue to report on investor related losses in oil and gas and commodities related investments. Investors may have potential legal remedies due to unsuitable recommendations by their broker to invest in this speculative and volatile area. Mid-Con Energy Partners (Ticker Symbol: MCEP) is a Master Limited Partnership (MLP). Mid-Con Energy Partners has declined 80.6% in value from its 52-week high and is trading at only $1.4 a share. Mid-Con Energy Partners business focuses in the oil and gas production sector.
About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. Oil and gas and commodities related investments have been recommended by brokers under the assumption that commodities prices would continue to go up. However, due to a combination of forces including slack demand in China and the strengthening dollar, last summer the price of oil & gas plummeted and remains around $40 to this day. Some experts are saying that if production volume continues to be as high as it currently is and demand growth weak that the return to $100 a barrel is years away.
However, brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.