Mitcham Industries Inc. (NasdaqGS: MIND) - Closed position for 15% gain
PPL Corporation (NYSE: PPL) - closed position for 11% gain
Atlas Pipeline Partners, L.P. (NYSE: APL) - Started new position
El Paso Pipeline Partners, L.P. (NYSE: EPB) - doubled current position
Calumet Specialty Products Partners LP (CLMT) - Co. announced new diesel refinery project w/ MDU started a position last week when secondary was offer @ $31.50/share. Stock already +15% from my original purchase price)
Although the GN$ for MIND is around $22.00/share, I decided to close this stub position out and move on. I also closed out my PPL position as I felt it was fairly valued and wanted to reduce my European exposure in this sector.
My plan is to consolidate these funds into a few of the MLP's I currently own that have exposure to LNG terminals and pipeline gathering & processing assets located in Canada, the U.S. & Mexico. I feel the portfolio does not have enough concentration in this end of the business (ie. NG gathering, processing, pipeline intra and inter state transportation, storage , terminals and LNG ships). I am also allocating some new funds to NG liquid processing, specialty chemicals and certain "niche" refining. CLMT is a new name I added that provides these services.
Finally, I am exploring starting a position in The Linde Group as they are a German conglomerate that design and build NG processing plants around the world. This company has several contracts in Asia including Vietnam and China that also have a long term "service" component attached. The Linde Group won the contract between NOBLE and CNX for the design and build out of their NG infrastructure U.S. shale acreage. This is a $1B joint developmental well project the company's have that will eventually double CNX NG reserves in the next five years. I am waiting for The Linde Group to become a "value" buy as the current price is near it's 52wk high. CNX is also on my buy list if/when it sell 10% lower.
I would like to position at least 20% of the taxable portfolio in this sector which will be a long term buy and hold prospect (at least 36 months) as I still see U.S. domestic surplus NG making it's way to Asia in the next 5-15 years. Many areas still provide significant value opportunities (including E&P's in Canada, new Canadian pipe line & LNG terminals, the consolidation of U.S. domestic NG gathering pipelines & facilities, infrastructure build out domestically and around the world, specific "niche" market services like the new N. Dakota diesel refinery MDU and CLMT are building). The companies I select should also spin off good dividend distributions as well as provide double digit growth potential.
EKS |
