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

To: Spekulatius who wrote (53404)	2/13/2014 2:42:46 PM
From: mopgcw	Read Replies (1) \| Respond to of 78714

RE: BWP -- it is very odd, especially since there is no news on Bluegrass. this from CS: What remains puzzling to us is why management and the Board chose to cut the distribution by 80% when Loews controls the GP and 53% of the LP units. We estimate that BWP could have saved ~$325 million by suspending and/or subordinating payouts to the GP and the units under the control of Loews vs. the $470mm/year with the cut, which could have saved major disruption to the price of the units not to mention the trust with investors. We can only speculate on the discussions that went on at the Board level but clearly the cut sends a more negative message in our view regarding the outlook. It could be interesting to watch this one unfold... L getting shares cheap?

To: Spekulatius who wrote (53404)	2/13/2014 8:43:07 PM
From: Mattyice	2 Recommendations Recommended By E_K_S Spekulatius Read Replies (1) \| Respond to of 78714

BWP - I continue to be in the boat that I hate these companies and there structure. The structure is so flawed imo... i have talked about it in the past. These bad boys are essentially insert MLPs for REITS in the early 70s and viola!! a ticking time bomb waiting to implode. But I regress and here is another case that a company I have really disliked, the assets have been terribly positioned for the past 5ish years (should have shorted the dang thing) - is somewhat now trading at a reasonable value even if you use doomsday scenarios. They have just got tripled wammied with initially being overinflated positioned to transport all this haynesville gas and having key storage assets along there Texas gas, boardwalk, and gulf south systems when storage was loved. To all of this gas essentially disappearing seemingly overnight and a Texas gas and boardwalk interstate facilities that was transporting gas north where a market was already saturated with gas. This is along with a dynamic Gulf South Pipeline that operates in the Louisiana/Miss/Ala industrial corridor that is damn near empty. If the renaissance in industrial manufacturing is just starting, i'm bound to think gulf south is positioned to capture this. I see two things happening... the first is boardwalk reversing course along with the other interstates to start moving gas back south. Where demand and the premium market (henry hub) seems to possibly have turned the corner. IMO - They have the assets and flexibility to capture the shift in US gas with pretty public talks about utilizing a big portion of their assets for the onslaught of liquids that are about to come out of the central-eastern part of the US. There is ZERO takeaway capacity for liquids out of the Marcellus. There bluegrass project which i'm not to familiar with sounds promising (not to mention williams doesnt just swing a big stick for nothing) The other is that they have some decent storage facilities along there Texas gas system. I'm not sure if yall are aware but storage is absolutely hated, if you have storage you are essentially losing money hand over fist, and until recent volatility it has been useless for the people who have it. I think this could eventually change. I'm not sure if we have got to the washout period in storage, but if i was a big boy (cough cough kinder) i wouldn't mind picking up some storage assets on the cheap. All in all with L behind them, some cheap assets that could be sold for cash if needed i think there is some value around this level after the recent sell off. I might like it a little more at $4-5 cheaper but i'm definitely keeping it on the radar. I think Spek is pretty spot on and has good feel for what is happening. From a big picture perspective, this is a classic case of buying low in a company who 'seems' to possibly have no future and selling high plus getting paid a little to hold the palette... i'm thinking of buying some pipeline units in two companies now... what in the heck is happening!