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

To: E_K_S who wrote (43191)	7/5/2011 3:51:37 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78731

Why going into the pipeline sector now that there is a feeding frenzy. i don't think that paying 15x EBITDA is a recipe for good performance. If interest rates go up, this sector is going to get whacked, imo. Every once in a while pipes can be bought for 8x EBITDA (this was the case in 2002 and then again in 2008). that's when they should be bought, not know. If anything, i would look for ETE on a pullback. It's the GP for ETP and while ETP has issues with dilution, more ETP unit just mean a higher cut for the General partner (ETE), as long as the yield for ETP is high enough to stay above the 50% GP threshold (below that it will get really ugly for the GP though).

To: E_K_S who wrote (43191)	7/5/2011 4:18:28 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78731

Yes, I've looked at ETE/ETP several times since Clownbuck mentioned them in '08. Unfortunately I never stepped in to buy shares. I guess I just have gone to other stocks in the sector. With the pipeline lp's I don't know enough to have an opinion whether one stock is better than another. I just saw SEP, and it looked okay enough for me for an add to diversify among the sector, so I started small buys. I also like NS (at a bit lower prices), but I don't have a good reason behind it. seekingalpha.com