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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (47461)	2/4/2012 3:01:11 AM
From: Johnny Canuck	Respond to of 70315

Propane Stocks: Strong Dividends With Turnaround Potential 3 comments \| February 3, 2012 \| includes: APU, FGP, SGU, SPH, UGI The low interest rate environment promised by the Federal Reserve should spark a move towards large cap dividend stocks. With government debt paying almost nothing, these stocks are seen as the safest alternative by investors looking for low-risk returns. For instance, during 13 years of low rates between 1938 and 1950, dividend stocks outperformed by 5.4% per year. The problem is that many dividend stocks are already trading at lofty valuations. But one sector that appears cheap is the propane industry. According to TickerSpy, the sector has underperformed by S&P 500 by 14.3% over the past month. And with some key changes on the way, there could be a lot of upside potential in the industry. The major players in this industry include: AmeriGas Partners LP ( APU) - 7.21% Yield Ferrellgas Partners LP ( FGP) - 12.27% Yield Star Gas Partners LP ( SGU) - 6.78% Yield Suburban Propane Partners LP ( SPH) - 7.93% Yield UGI Corp ( UGI) - 3.79% Yield Propane Industry Faces Many Challenges The propane industry has faced a number of different challenges throughout the economic crisis. High commodity prices have hurt its profit margins, while the weakness in the housing market has hurts its sales. And recently, unseasonably warm weather has hurt its sales and led to lower volume and margins as consumers needed less heating. But some investors believe that much of the bad news is already priced into the sector. Companies like Ferrellgas are trading down nearly 43% over past year, while all of the aforementioned companies have fallen at least 13% over that time period. As a result, any unexpected positive news could therefore result in a significant turnaround. Challenges Now Could Spell Opportunity The challenging operating environment for propane companies has forced many to slim down and restructure their operations. These leaner businesses could help dramatically improve margins and performance when the market turns. Others have focused on improving their market share, which could lead to higher sales when a recovery takes hold. In the meantime, investors can benefit from some of the healthiest dividend yields found anywhere in the U.S. markets. These yields have been consistently paid out and are considered to be relatively safe given the limited partnership structure utilized by most of the industry's key players mentioned above in this article. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. This article is tagged with: Investing for Income, Dividend Quick Picks & Lists, United States

To: Johnny Canuck who wrote (47461)	2/4/2012 12:28:36 PM
From: robert b furman	Read Replies (1) \| Respond to of 70315

Hi Johnny, I've wondered been concerned about light volume also. Volume only comes when fast price action upward draws others not normally in market - into the market. I do not think we can expect big volume boosts until and after he have breeched the past highs as in SOX,TRANS,XLF. When the laggard become leaders all the averages can get back to 2011 highs and then we'll need to expect volume increases. Which after all the common that has been bought back - it wioll be explosive. Bob