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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (35989)	11/20/2009 12:09:29 PM
From: E_K_S	1 Recommendation Read Replies (1) of 78485

Hi Paul - I listened to Bill Gross yesterday who is bullish on the utility stocks. I continue to scan stocks in this sector and like those that also have an unregulated business component to their revenue streams. My thought is that the unregulated component can generate more growth for the future. Spekulatius posted the Citi Bank analysis that provides a pretty good list of specific stocks in this sector. Citigroup - integrated gas utilities: citigroupgeo.com I have narrowed them down to two that I have on my watch & buy list: finance.yahoo.com I want to add to my CNP and start a new position for ATO. It is just the price entry point that I am waiting on as many of these are selling above their 50 DMA. I like to buy those that are below their 50 week MA using a 104 week time period. Along a similar theme (buying good dividend payers at a discount with a growth kicker), I have been looking at CEF (Closed End Funds) selling at a discount. Compounding Divdends paymedividends.blogspot.com From the article. Three examples: JNK, HYG and HYV Barclays Capital High Yield Bond ETF (JNK) is paying over 14%. iShares iBoxx $ High Yield Corporate Bond Fund (HYG) is paying 11%. BlackRock Corporate High Yield Fund V, Inc. (HYV) is paying 13% and selling at a 7% discount. This one looked the most interesting but their fund expense ratio is quite high. GLO - An Overlooked Fund paymedividends.blogspot.com According to the article:"...It is a go anywhere, flexible fund with a good manager paying over 8% and selling at a 19% discount. Mr. Clough has a proven record and is invested in the right areas such as Energy, China and Brazil. As the world economy recovers, these are areas I want to own and GLO has them at a discount...." Finally, I continue to look at Tortoise Capital Advisors that have five Publicly-Traded Closed-End Funds funds. tortoiseadvisors.com * Tortoise Energy Infrastructure Corp. (NYSE: TYG) * Tortoise Energy Capital Corp. (NYSE: TYY) * Tortoise North American Energy Corp. (NYSE: TYN) * Tortoise Capital Resources Corp. (NYSE: TTO) * Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE: TPZ) All the funds generate a pretty good yield. Distribution Yield Information TYG TYY TYN TTO TPZ Yield 7.8% 7.4% 7.9% 8.8% 8.0% There was some discussion on the message boards that some investors are disappointed with the Tortoise Capital management group based on their past performance in their energy fund. I am not too sure if it was the management group or just the nature of the volatility of the sector, especially with the range in the price of oil last year. TPZ is my favorite and is the one you alerted me to. TPZ sells at a 7.4% discount to its NAV currently (@$18.84/share) but be careful on the buys to keep the price paid below the NAV. I have been buying below $19.00/share in my IRA and have the dividends reinvested. -------------------------------------------------------------------------------- I sold all my mutual funds and have focused on owning individual stocks. I am not too sure I want to start accumulating CEFs but they begin to look attractive when you can buy at a discount to the NAV. The ETF alternatives look attractive as they provide active daily trading so you can get in or out w/o any problem. I am still pondering what impact higher rates will have on all of these investment options. I am leaning to those w/ a growth kicker but Bill Gross also makes a good argument for owning utilities. The key will be to buy at a "value" price over a period of time. EKS

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