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

To: Spekulatius who wrote (54098)	6/28/2014 2:32:33 AM
From: Elroy	Read Replies (4) \| Respond to of 78577

One should be careful with MLPs, they have been a major beneficiary of the low interest rate and the various QE's. The MLPs I own have nice high yields (around 9% or so), so I'm not really planning to sell them. It's great when the share price goes up, but since I don't plan to sell and recognize the capital gain, it doesn't really matter much where the share price goes. For ETE I sold it because the share price went up so much the yield was unattractive (below 3%). Nevertheless, it still keeps going up, don't ask me why. So when you say be careful, what do you mean, be careful of what? As long as the dividends don't get cut I don't really care where the share price goes. I've owned CPLP for a few years. I bought it around $8.70, it went down to about $6.50 when a customer declared bankruptcy, now it's pushing above $11. I don't care much, it keeps spitting out 29 cents every quarter. I feel better when it's up, but I can't spend my feelings. It's the dividend I care about.

To: Spekulatius who wrote (54098)	6/30/2014 12:35:36 PM
From: mopgcw	Read Replies (1) \| Respond to of 78577

Spek: My concern with SHLX is that it will be IPO'd at a distribution yield of 4% or less. Thanks but no thanks Keep in mind most of the spinoffs (I have followed) always start with a low yield, with the expectation that it gets increased significantly over the next two years to a more normalized level. Your other point is spot on and makes me very nervous as well. good luck Geo

To: Spekulatius who wrote (54098)	8/11/2014 11:34:45 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78577

KMI stock got a bump and KMP/KMR/EPB and even nicer bump from todays announcement. I would have thought that a combination favors the KMI GP more than the LP's but they had to doit in a way that the LP holders won't revolt about the lower yield going forward. I think this deal also has some negatives, as it increases the overall leverage a bit (due to the cash component of the deal), but I am pretty sure that they structure this so that they stay investment grade (BBB- or better) , because it makes continued access to capital much easier. I have a substantial position in KMI - more than 5% in my IRA and ~6% in my taxable account.