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

To: E_K_S who wrote (49475)	9/19/2012 10:56:00 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78743

Re ETP - >>I have got this one on my watch list if it should fall below $40.00/share<< I guess it depends on your confidence to hit the best price. I think the current price around 42$ represents a pretty good value, so I am buying some now. It will go lower, if they announce another secondary now, but since they just had one done recently, I think the next secondary will occur a few month out. Also to consider is that you are missing out on a distribution (0.89$) potentially by holding out. These MLP's are really beneficiaries from QE3, by means of having access to cheap debt financing and because they own assets that will increase revenues with inflation (via FERC FEE indexing to inflation+2% or so), while. My MET (which I sold a few days go) is really hurt by low interest rates, which it seems is the market starting to figure out. Somewhat off topic, a lot of folks are recommending to sell puts, as it is the same than putting in limit orders (which is how I like to buy my stocks). Well, I think the two are not really comparable. I can pull my limit order (unless they hit) at any time without penalty but if you sell a put, and the market starts to weaken and volatility goes up, the put starts to increase in value even though it is not in the money. So, at that point, the trades starts to loose money, which is not the case with a simple limit order. For this reason, I am not really a big fan of selling puts, even if I had the cash to buy shares, unless we have a special situation, where the premiums are very high.