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

To: Spekulatius who wrote (30796)	5/24/2008 1:59:21 AM
From: Spekulatius	Respond to of 78715

NS - bought yet another MLP. NS is a spinoff from VLO and owns refined products and crude pipelines as well as terminals. Most revenue is fee based (80%) income without commodity sensitivity. Recently they purchased some Asphalt refineries from Citgo as well as terminal assets but those are only 20% of the assets. Last earnings seemed looked good with plenty of coverage for the distribution. Generally speaking I like the pipelines for their distribution yield and growth. Oil pipelines and terminals are generating fee income that is indexed to inflation (the real inflation not the core inflation) which is approx. 5%. That guarantees moderately higher revenues and income even without acquisitions.