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

To: Spekulatius who wrote (52530)	10/18/2013 9:03:25 AM
From: E_K_S	Read Replies (2) \| Respond to of 78671

My sale in DLR was more of a portfolio management consideration as I needed to book my loss for year end but screwed up with the wash sale rule. As a result I needed to flush the entire holding and will re-evaluate in 31 days. In the interim, QTS has similar distributions as DLRw/ properties located in the U.S.. I think I can buy at a bit lower levels and should provide the portfolio ok exposure to the REIT cloud sector. That said, I guess I am not as bullish on the cloud REITs as I am with selected energy MLPs. As Jimisjim stated, this segment is getting a bit crowded w/ several new IPO's recently (VEEV & QTS). Google, Amazon, AAPL & FB build their own data centers now (not like in the early stage of the business) which could signal that future double digit growth opportunities may be limited. I think I can get a bit higher distributions and better long term growth w/ a basket of these MLPs. Also, w/ my DLR proceeds, it give me a chance to buy more KM I and EPB which have sold off recently. My search for income & growth at a value price continue to point me to my NG infrastructure theme. As long as there is a huge difference in world wide NG prices (ie. Europe $12.00/Mcf, Japan & China $16.00/Mcf and U.S. $3.73/Mcf) there will be opportunities to drill/transport/compress cheap gas and deliver it to high gas regions. There are many other value added plays (like specialty refiners ie CLMT & OCIP) that benefit from cheap NG feedstock and will continue as long as prices remain at historical lows in the U.S.. Therefore, the value investor must step back and look at the big picture and realize that we are in a once in a life time disruptive environment for this domestic U.S. shale play and as a result must build the portfolio to take advantage of this opportunity. The emergence of the smartphone and smart devices is another disruptive technology that is playing out too but maybe not w/ the same economic benefits as cheap shale gas & oil. One still needs to have some exposure to this sector but I have yet to find a "pure" value/income play in this sector as I have for the NG/oil shale. I am just playing in another sandbox now and will probably be back to the DLR sandbox later. EKS