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Strategies & Market Trends : Value Investing

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To: Krigannie who wrote (56403)	12/16/2015 8:55:00 PM
From: Spekulatius	1 Recommendation Read Replies (2) of 78683

SE and SEP yield similar and SE as the GP has the better growth prospects (due to the IDR's) , so I think SE is a much better deal at this point. SEP with an ~6.5% yield is not really undervalued like so many other MLPs at the moment. DCP is more problematic, but as I understand it, SE's growth and dividends don't depend on DCP's contribution, it is solely fueled by SEP growth. I think a good deal of the MLP space is oversold due to fear of aftershocks from low crude and gas prices (which does make sense) , but more so from tax loss and panic selling from these MLP funds that deploy leverage and are forced to through units on the market due to redemptions and additional leverage reduction in top of that. This makes for indiscriminate selling, which I think is a good spot for a value investor to pick up bargains.

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