Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Spekulatius who wrote (45328)	9/19/2012 12:56:16 AM
From: Spekulatius	2 Recommendations Read Replies (2) \| Respond to of 78740

ETP- Bought a few units today at 42.05$. ETP has been stagnating since 2008 in term of it's distribution. The company is now completely remodeled with the SUG acquisition (via ETE) , the pending purchase of SUN (for it's crude and refined product pipelines) and the sale of the somewhat ailing propane business. I like the collection of asset they have assembled and I think that growing the distribution again ought to be possible. My rough estimate is that ETP (ex the GP contribution) should dom 1.6B$ in EBITDA with a ~20B$ in EV (roughly 12x EBITDA) which is not extremely cheap but no expensive either. The high yield if 8%+ is the main attractikn and distribution growth would be icing on the cake. This MLP is a good one to pick up on secondaries, which are most likely firthcoming this year, due to need to finance the acquisitions, dropdowns and organic growth projects. I am buying some units here with the intend to pick up some more later opportunistically.