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

To: mopgcw who wrote (52375)	9/13/2013 10:29:24 PM
From: E_K_S	Read Replies (1) \| Respond to of 78755

Hi mopgcw - Re: NS/NSH I agree w/ you that long term they will get FCF inline w/ their debt. I do like that they are spending money on expanding their storage footprint. I believe it was $250mln. Once they complete that project, it will add to their revenue streams. I have experienced too many of these high divided and/or leverage MLP's that do a distribution cut that seem to have sold off to reflect that expectation but only to see another significant leg down when the actual cut is announced. The only thing for NS/NSH is if management states that there will be "no distribution cut" soon and perhaps announces other asset sales will we see a rally to the upside perhaps as much as 10%. For me, it was an easy call to sell my small position as I did not have much invested but for a long term holder it is a bit more difficult. You will continue to get distributions and as the company builds their FCF from new projects, cut costs and debt, longer term I think by expanding their capacity in their core storage business, FCF will grow and maybe distributions too. We have these hedge funds now writing newsletters that even the best MLP's (KMI for Kinder Morgan, Inc , KMP for Kinder Morgan Energy Partners LP , EPB for El Paso Pipeline Partners , and KMR forKinder Morgan Management . ) have "fluffed" up revenue streams w/ too much debt that may not be reflected properly generating selling from the weak shareholders. For me these are buying opportunities. I own all of them and plan to buy more if/when they sell a bit lower. 4 Things Hedgeye Got Wrong Yesterday, Hedgeye analyst Kevin Kaiser released a 45-page report suggesting that investors avoid or actively short the various securities of Kinder Morgan. Don't put too much stock in this latest bit of research from Kevin Kaiser and Hedgeye. It's slickly packaged and full of confident assertions, but the conclusions miss the mark. It seems like a typical Wall Street tactics -- use hype and salesmanship while skimping on substance. In truth, the Kinder Morgan companies are well-managed, boast solid assets, and will play a big role in meeting America's future energy infrastructure needs. Of course, it has its risks, like higher interest rates, frozen credit markets, or changing regulations. So, even the best of these MLP's are suspect but when you understand the scope of their assets, locations, value any sell off up to some point, they become raging "Value" Buys. This includes NS/NSH but it all comes up to at what price? All you can do is understand the assets they own, the ones they are selling and look at how future revenues streams can be added and or increased. EKS