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

To: Spekulatius who wrote (33747)	3/10/2009 11:30:03 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78753

pipeline mlp's: Thanks for EPD suggestion. Reminded me to check EEQ. Still seems viable. Do you, or anyone else here, have a current opinion to offer again on this one? (It's come back down (except today) after its nice rise soon after being discussed here.) finance.yahoo.com

To: Spekulatius who wrote (33747)	3/29/2009 12:44:25 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78753

I looked at PEP annual report and I am not sure I like to hold it here. Of course, the 2008 was tough, so the results are OKish taking into account the economy. However, the stock is rather expensive here. Plus they took on debt to repurchase stock, which is IMHO almost never a great idea. Most companies who did this got burned as stock declined further and they could not buy back even more at even lower prices. IMHO, buying back stock from free cash flow is great. Taking on debt to buy stock is not. Considering that PEP has almost zero positive cash flow after cap spending, acquisitions and dividends, and dividend yield is only about 3.2% here, I am not sure it's a great hold. Will think more about it.