Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

Recommended by:

AFed

research1234

To: E_K_S who wrote (51834)	7/6/2013 12:36:58 PM
From: Spekulatius	2 Recommendations Read Replies (1) of 78701

It's probably a good idea not to step in the direct line of fire and buy LINE, especially since I believe it is not even cheap, based on the metrics I am seeing (EV way higher than NPV10, valued at 3$/MCFE of proceed reserves while some E&P's like WPX or DVN trade ~1$/MCFE). My personal pick for trade in this sector would be VNR -similar EV compared to BBEP, similar amount of reserves, but none of the issues with pot. Busted merger. VNR's accounting is supposed to be conservative but I have not checked it myself. I don't like E&P MLP and never owned them. I think the risk of a Ponzi scheme in this lind of MLP is fairly high and E&P MLP are certainly unsuitable in an IRA because the hedging gains can create unpredictable UBTI. I own some NSH (which has issues too but is a regular pipeline MLP) at a 9% yield and think it is a better proposition.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next