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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (31988)	9/15/2008 12:28:03 PM
From: E_K_S	Read Replies (2) of 78715

Followed you in on Macquarie Infrastructure Company LLC (MIC) for a starter position for my IRA. The company carries a lot of debt but appears to have sufficient cash flow to service it. I like two of their primary businesses (1) Bulk liquid storage terminals and (2) Gas production & Distribution. The bulk liquid storage business has good growth potential and steady cash flow from long term (3-5 year) customer contracts. They do not own the products they store but just provide the terminal storage facilities. Their gas production and distribution business is located in Hawaii. They operate the only gas utility in the Hawaiian islands and are the state's largest propane distribution company on the island. If they maintain their current dividend payout, the stock yields around 13%. Their depreciation expense is quite high which overshadows their actual operating cash flow (about $2.22/share). If they can work down their large amount of debt over time (from current business operations), then this company should be able to build their future book value which will eventually be reflected in a higher stock price. EKS

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