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

To: Paul Senior who wrote (41497)	2/23/2011 10:11:30 AM
From: E_K_S	Respond to of 78622

Hi Paul RE: Investors Real Estate Trust (IRET) I was looking for IRET to replace a small fairly valued utility position in an IRA. I need something that generates income, will hedge future inflation (they own real estate), and can be purchased at a good value. As you pointed out, the upside is very limited (perhaps 10%) and the company has a history of accounting for much of their dividends as a "return of capital" thus reducing your overall cost basis over time. Therefore, future capital gains would be exempt in an IRA account. Another sector that should benefit from the E&P Oil & NG shale well growth are the MLP pipeline & distribution companies. The EPD and DEP deal is one of many I believe will be done. These companies have less upside than some of the more successful E&P companies but you get the immediate payback from their revenue stream(s). Many can still be had at pretty good values (ie PE's less than 15 w/ industry avg at 21 or higher). I think some excellent value opportunities still exist in many of these NG gathering companies too. Many times partial partnership interests are sold to MLP's while the remaining interests are held by the growing E&P company (eg. MHR and GMXR). I am going to focus my "value" hunt in this segment (both with MLP buyers and the E&P sellers). Thanks for the feedback on IRET. EKS FWIW StealthGas, Inc. (GASS) reported good earnings (stock up 7.19 Up 0.63 (9.60%) 9:50AM EST). They exceeded analysts estimates by 24% for FY 2010 ($0.51 vs $0.42). They should be another beneficiary of the NG growth.