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

To: Paul Senior who wrote (40421)	12/6/2010 3:37:23 PM
From: E_K_S	Respond to of 78465

Re: Penn West Energy Trust (PWE) & Linn Energy, LLC (NasdaqGS: LINE ) (Another value candidate I like is Williams Companies, Inc. (The)(NYSE: WMB )) Don't Get Too Worked Up Over Penn West Energy Trust's Earnings fool.com From the article:"...Penn West Energy Trust's issue isn't questionable cash flow boosts, but items in that suspect group that reduced cash flow. Within the questionable cash flow figure -- here a negative-- plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) constituted the biggest reversal. Overall, the biggest drag on FCF came from capital expenditures, which consumed all of cash from operations, and more besides...." ================================================================= Never looked at their FCF recently, but after the expenses to convert to a corporation (a lot of one time hits to FCF), their next big use of cash are their CapX investments. This IMO is good for future growth and future higher revenue streams. Notice that Linn Energy, LLC(NasdaqGS: LINE ) is the only one in their table that has positive FCF. I recently started a position in this MLP on 09/08/2010 at $29.95/share. =================================================================== Linn Energy, LLC (NasdaqGS: LINE ) near it's all time high and now BullMarket.com's Recommends this one as one of it's Top High=Yield Stock Picks for 2011. Understanding High-Yield MLPs And How to Choose the Best Ones for 2011 finance.yahoo.com From the article:"...This year's report features over 30 MLPs, including names such as Terra Nitrogen (NYSE: TNH - News), Targa Resources Partners (Nasdaq: NGLS - News), Plains All American (NYSE: PAA - News), Linn Energy (Nasdaq: LINE - News), and Alliance Resource Partners (Nasdaq: ARLP - News), among many others. In its third annual High Yield Special Report, BullMarket.com gives its top-ten high-yield stocks for the new year, as well gives opinions on over 50 other high-yield stocks. BullMarket.com's first-two high-yield special reports have featured a number of MLPs. 2009's report included two MLP picks: Enterprise Products Partners (NYSE: EPD - News) and Kinder Morgan Energy Partners (NYSE: KMP - News), which returned 83% and 37%, respectively. All in all, 2009's picks had a one-year average return of 75.1%...." =================================================================== Many of these I own and now in their latest release LINE is on their list (up 23% from my initial buy in 09/2010 and now trading at an all time high!). The air is getting pretty thin at these levels, I am tempted to peel off a few shares on their list as the valuations are high and there is too much "positive" discussion on all of these MLP's. I am still bullish on NG. It may have finally broken out of it's consolidated multi year price range of $4.00/mcf (today's price hit $4.50/mcf). As the deep water drilling bans continue (looks like several years),E&P money is flowing into land based drilling. As a result, many of the MLP's will benefit from the cash flow generated from their pipeline services due to the increased volume processed (so that to me sounds bullish for the sector). Your PWE add amid all this activity in the sector is probably a better bet than upping my MLP holds. I am also looking at possible adds to Williams Companies, Inc. (The) (NYSE: WMB ), Transcananda Corporation(Holdin(NYSE: TRP ) and MDU Resources Group, Inc. Commo(NYSE: MDU ). finance.yahoo.com My favorites based on PE and positioned for future growth now are PWE and WMB. However, this is a moving target. FWIW you have got me thinking about PWE again...... EKS