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

To: xxyy who wrote (2934)	6/10/2012 11:16:49 AM
From: Covenant	1 Recommendation Respond to of 3249

Re: NATDF ESV is the best company of the three mentioned. Unfortunately, ESV's pricing reflects this quality. I'm invested in NE and NATDF. NATDF is the cheapest of the three. It also has the highest risk of being impacted by a Macondo like event due to its limited geography. NATDF is also the most aggressive in employing leverage. On the plus side, NATDF distributes much of its earnings so the investor gets to determine how these earnings are deployed rather than management. I like this because it raises the bar on company investments. Companies with low dividends tend to reinvest their earnings on lower return items. One of the best ways to improve management performance is to limit availability of capital thereby making it so only the most promising opportunities are invested in. We've gone over NE so many times I don't see a reason to repeat. All three trade on oil prices which have dropped recently. The metric which matters, day rates, has been rising, so there is a market disconnect. Now is a good time to invest in drillers (take your pick) to take advantage of that market disconnect.