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 (50055)	11/14/2012 11:56:56 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

I need to look at SE and SEP again. Sold my SE because I thought it was/is at fair value even though I really liked their distribution network. SEP is selling where I originally bought it but I also own quite a few other pipeline related companies that just had better growth potential. Remember WMB. I loaded up on that one 3 years ago received a spin off of their E&P company and since then the stock has gone from $16 to $31. EP was a similar story. So, yes SEP will yield that 7.2% but no growth kicker. I am not sure where more of those companies are since many have merged and/or got bought out. The expansion of the shale gas & oil is creating the opportunity. I keep turning over stones to see if there are other candidate stocks w/ low risk and high rewards. For now, I am playing in the preferred sand box. I have also been scanning the junk bond desk but there you have to be a longer term holder (2-5 years). My only play there is the SVU 8% bonds that mature in 2016 which I bought at a 15% discount to PAR. I do expect this correction to last much longer and trade much lower (maybe back to DOW 10K) or about 250 S&P pts lower. So, many of my new buys are in preferred paper and/or high monthly/quarterly yielders so if I have to hold, I generate income. SEP does fit that category but I have been studying many others too. FWIW, I bought a small position in SFL yesterday. It used to be a top 5 holding but sold it out on the last run to $17.00/share. I bought just enough to make an even lot from the shares I bought around $6.00/share in the depth of the 2009 crash. They have always paid a pretty good dividend (over 10% yield at the current price) so for me it's a nice one to hold. EKS