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

To: E_K_S who wrote (50962)	2/24/2013 12:03:31 AM
From: Spekulatius	Respond to of 78748

Re ETP - I have purchased ETP with a certain scenario in mind that did not play out. My assumption was, that once the Sunoco deal was consummated, and ETP had a full quarter of Sunoco's cash flow (the deal closed half way through the last quarter, so ETP had the dilution but not the full benefit of Sunoco's cash flow), ETP's distribution coverage would exceed 1x, which would get them into the position to raise the long stalled distribution. I purchased ETP at <42$ or a yield >8.5%, which I felt was giving me a margin of safety and I would be OK, as long as the distribution is not cut. Well, here we are now, the units now cost 47$, the yield is 7.5% and it does not seem like a distribution increase is likely. I like the fact that I was wrong, yet was still rewarded with a 20% return, including the distributions received. I'll take my bucks and look for something else. if ETP hits 42$ again, I likely will buy the units again, but I won't touch them for a yield of less than 8% for sure, unless the growth outlook changes.