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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (19774)	10/6/2004 10:29:36 PM
From: E_K_S	Read Replies (1) \| Respond to of 78625

Hi Paul - I like CSX a lot and there is a bunch of hidden value in the real estate rights they own on and near their rail right of ways. I know at one time that they may have sold some of these easements to telecomunication and gas companies to install fibre and natural gas lines. Any thought on pipeline companies that might be under valued? I think with all of this oil talk, natural gas pipe lines and transmission companies might be of interest. I have accumulated EP (starting buyin in the 3's and 5's) my fair value estimate is $11.00, MRO I recently sold my small holding but I really like the company. They have an interesting natural gas pipeline distribution subsidiary which is over looked, UGI begun buying a few months back at $30 with a very profital natural gas distribution business and TRP a Candian company which have natural gas pipelines and transmission facilities in both Canada and the U.S.. I love these types of companies as they control the infrastructure for distribution and get paid based on volume of product moved not necessarily based on the price of the commodity. They also have a lot of intanagibles like leasing the right of way for stringing telecommunication fibre or adding natural gas pipe lines (in the case of CVX and MRO). I believe Warren Buffet last year invested big dollars in the West Coast to Texas pipe line company (I think it was previously owned by Williams). He got it for pennies on the dollar when the Enron thing imploded. A very smart value investment. Therefore, I am looking for any good pipe line investments that may be under utilized and at or below book value. Can you or anybody on the board provide some suggestions? EKS P.S. MRK hit a new five year low. Will begin buying on a lower low on lower volume. OBV needs to get more negative. Not enough blood in the street and we still have a few long term investors holding on. Target price somewhere below $30 but it's more a time thing than price. Need to be patient and wait at least 60-90 days before nibbling.