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

To: Paul Senior who wrote (36485)	1/19/2010 1:07:23 PM
From: E_K_S	Respond to of 78750

Hi Paul - I am looking at doing the same thing with my LLY. I closed my UNH holdings in the IRA this morning. The rally in the health care and drug stocks is due to the special election in Massachusetts going to the republican which might impact the outcome of current health care reform bill. I think the market is over reacting and the long term value proposition for a lot of these companies has not really changed from Friday's close. I sold all of my JnJ earlier this month after coming to the same conclusion you did with regards to many of the "growth" and regulatory challenges they have (LLY probably more so). We will probably have a a chance to re-enter these stocks at lower prices in the future. The price action looks like a blow off (especially after the triple witching option activity last Friday) rather than a breaking to new highs. Therefore, I am going to error on booking a profit now on some of these marginal health care issues that are in the portfolio. ================================================================= I do like the action today on WMB (up 8%) with their strategic restructuring announcement to create a giant NG partnership. Along with the recent XOM merger w/ XTO Energy, this confirms to me that the industry is experiencing a major transition to much higher usage in NG in the future. I will continue to explore the value opportunities in this sector as there appears to be many still available. TORTOISE PWR AND ENE (TPZ) will be a fund to watch to see what they continue to buy in this sector. Their top 10 holdings are here tortoiseadvisors.com Top 10 Holdings [ top ] Holdings (at 12/31/2009) % of Investment Securities Kinder Morgan Management, LLC 8.5% Enbridge Energy Management, L.L.C. 8.3% Inergy, L.P. 4.0% NiSource Finance Corp.10.750%03/15/2016 3.4% Duncan Energy Partners L.P. 3.2% TransCanada Pipelines 6.350%05/15/2067 3.1% PPL Capital Funding,6.700%, 03/30/2067 2.9% CenterPoint Energy, 6.500%, 05/01/2018 2.9% Midcontinent Express Pipeline, LLC, 2.9% NRG Energy, Inc., 8.500%, 06/15/2019 2.9% --------------------------------------------------------------- Top 10 Holdings as a % of Investment Securities 42.1% Total Assets $180.6mm EKS