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

To: Paul Senior who wrote (41447)	2/17/2011 5:02:21 PM
From: E_K_S	Read Replies (2) \| Respond to of 78615

Hi Paul - I have been thinking about types of 2nd derivative "value" investments that would take advantage of all of this E&P capital sloshing its way through the Bakken oil shale states. Basically it would comprise the mid west states, specifically North & South Dakota. One name I came up with is Investors Real Estate Trust (IRET) - Dividend yield around 7.7%. This is a diversified REIT company that owns different types of properties in the Bakken oil shale region. finance.yahoo.com They own multi-family residential properties and commercial office, medical, industrial, and retail properties located primarily in the upper midwest states of Minnesota and North Dakota. As of April 30, 2008, the company operated a real estate portfolio of 72 multi-family residential; 65 office; 48 medical; 17 industrial; and 33 retail properties. If you reinvest your dividends through the company's DRIP program, you receive a 5% discounts on purchases. From their Web site:"...Through IRET Direct, you can reinvest your distributions at a 5% discount below the market price for our common shares on the distribution payment date...." www1.snl.com My value proposition is (1) property values have probably bottomed, (2) the local economies should be doing better w/ more money coming from E&P capital investments and (3) the company buys a lot of their properties with cash and little debt. Their debt to equity is just over 50% on their properties and their payout ratio is still high over 100% (it has to be since it is an REIT). If you think real property has bottomed, then it might be a good time to accumulate a position. They do have a history of a high percentage of "Return of Capital", which when added to your 5% share discount on their DRIP program will reduce your overall cost basis substantially. www1.snl.com Therefore most of your gain will eventually be a long term capital gain (when LT shares are sold) and hopefully taxed at a lower tax rate than typical REIT dividend income. EKS

To: Paul Senior who wrote (41447)	7/5/2011 12:43:10 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78615

Fwiw, small add today by me to my TYN position. finance.yahoo.com

To: Paul Senior who wrote (41447)	10/28/2011 6:04:37 PM
From: E_K_S	1 Recommendation Read Replies (1) \| Respond to of 78615

Hi Paul - Some more good news happening in the Bakken. Enbridge Energy Partners LP (EEP) Enbridge Energy announces Bakken Access expansion program (EEP) 30.61 +0.24 : Co announced that it is undertaking a series of projects, totaling ~$90 million, to expand the gathering capacity on its North Dakota system by 100,000 barrels per day... This upstream expansion project is expected to be in service by early 2013, and it involves increasing pipeline capacities, construction of additional storage tanks and addition of truck access facilities at multiple locations in western North Dakota. UPDATE 1-Enbridge plans more Bakken pipeline capacity * Company responds to growing production forecasts * Project to add 100,000 bpd oil-handling capacity * Earlier project added 120,000 bpd reuters.com ----------------------------------------------------------------------------------- This article points out just how fast the Bakken shale fields are being developed with new wells coming online. Lots of value being added to several of the small and medium E&P operators especially now that pipeline capacity is being increased. EKS