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

To: MoneyPenny who wrote (43216)	7/7/2011 9:35:36 AM
From: Spekulatius	Respond to of 78970

re MLP - I don't own MLP's at this point. I think they are too expensive, or in other words yields are too low to bother with them. I do think they are a terrific vehicle for retires requiring income. the IV MLPs board is a great place to learn about them. On big lesson I learned is that the prices/ yields of MLP are strongly correlated with the yields of BBB bonds. This is understandable, since bonds are an alternative investment to MLP's and in addition most MLP's have a a BBB credit rating (or somewhat below), so BBB is a good proxy for their cost of capital. Given my dim view of the bond market, I don't think I want to own an investment correlated with BBB bonds of infinite maturity, so I don't own MLP's at this time. Once yields go past 8%, I am going to take a look at them again.

To: MoneyPenny who wrote (43216)	7/7/2011 11:18:07 AM
From: E_K_S	Read Replies (1) \| Respond to of 78970

Hi MoneyPenny - CS Take on MLPs Weekly Analysis Billions Need to Be Spent on US Midstream 24 pages, 41 exhibits Download Link: sendspace.com From the Report:"...INGAA infrastructure report portends well for MLP growth prospects: INGAA's report “North American Gas Midstream Infrastructure Through 2035: A Secure Energy Future”, released June 28, 2011, highlights the need for an average of $10.1 billion per year in midstream infrastructure spending through 2035 (see table on page 4). The investments aim to connect new areas of supply with end markets and meet the expected increase in aggregate demand for natural gas. In our view, the MLPs will do the majority of the required heavy lifting/investing over the next two decades thereby supporting continued DCF growth. Stocks that we believe are best positioned to invest in the required infrastructure include: DPM, EPD, KMP, NGLS, OKS and PAA....". ------------------------------------------------------------------------------------------------------------------------- I own two of the six on their list: EPD & DPM Stocks mentioned in the Report: finance.yahoo.com ------------------------------------------------------------------------------------------------------------------------ Re: MLP K1 statements I set up an auto email alert for electronic delivery of my K1's. It has worked great so far but I do agree w/ you that it tends to complicate the return a bit especially having to wait until the end of March for the K1 statements. You can register your Email address here w/ each MLP company you hold: taxpackagesupport.com FWIW, some of my best overall stock performers have been the MLPs including LINE that I bought 9/2010 @ $29.95 (up 32%), DPM 2/2010 @ $30.22 (up 39%) and EEQ 12/2008 @ $9.32 (up 230%). The MLP's in the portfolio represent at most 4% of my portfolio(s) and do generate some good income. MLPs are one of the only "pure" ways to invest in pipe line companies specifically NG gathers and interstate transporters. The CS report posted states that significant growth is expected for infrastructure expansion to accommodate all the new NG production from the new shale wells being developed. I am bullish on the sector and hunting out possible value/growth plays. If you discover any, please post. EKS