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 (52325)	9/5/2013 10:42:16 AM
From: E_K_S	Read Replies (1) \| Respond to of 78817

Hi Spekulatius - Re: VERESEN INC. (VSN.TO) I know that this company has a very leveraged debt profile and coverage on their dividend is over 100% and at the very high of sustainable (8.8% yield). Therefore, going into the investment, I am ok w/ a cut in their distribution by 50% if/when they move forward on their NG LNG export facility and financing (target date 2018). I like the company story and their 15 year acquisition growth strategy. They have stabilized their cash flows w/ long term NG contracts. Their story is about consolidation combining several of the small Canadian NG gathers into one large "infrastructure" company ( 15 Years: Veresen Inc. Eight-Minute History). The video discusses their combined assets, their long term strategy to move Canadian NG to the U.S. and then Asia and financing w/ their recent IPO. My investment bet is that by combining these small companies (my guess is others to be approached in the Baken Shale region soon), the sum of the parts now become an efficient collector, transporter, producer and distributor of LNG. I have yet to dive into their subsidiary holdings and debt. They did do a recent IPO where they may discuss their debt further. I continue to watch the company and their acquisitions and pending projects. Will add shares on weakness and/or on positive news stories. Position is still quite small and in IRA and ROTH accounts only w/ total represent a 2% portfolio position in those combined portfolios (ie ROTH & IRA). EKS