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

To: Spekulatius who wrote (55594)	7/1/2015 7:09:19 PM
From: E_K_S	Read Replies (2) \| Respond to of 78627

Re: CMLP/CEQP They brought in new management, I like their geographical footprint (three strong growth areas) and will have exposure to export LNG (their pipeline(s) must be used to get product to the newly licensed /planned export terminals; one on East coast and one in South Texas- Gulf of Mexico area). Market-cap off over 50% last 90 days, so I think the selling is way overdone. I may be wrong but I think their assets have good value but hard to say if their forward projections are any good. Now that the IDR's are gone, there s/d be more FCF to finance growth and/or pay any understated maintenance work. Location and land access easements (for pipelines) have significant value. These access 'right-of-ways' are tied up in long term contracts. Companies that spend so much money to drill production wells in these locations where they own the exclusive gathering rights, to me has significant current & future value. Time will tell weather I am right. I posted more over on the Dividend for investments thread. CMLP's senior debt is trading at a premium which tells me that the debt market sees little risk in their future revenue stream. They also have some hidden assets they can sell, like a salt mine in New York and/or a small oil/shale field in California (located on the Monterrey shelf) that could raise more capital. FWIW, I sold out my OKE keeping tight stops as this whole sector sells off. I figured I need to reduce my exposure in all the pipeline infrastructure companies (gathering,processing,storage,etc) as this sector is out of favor now. I could be wrong as DPM another MLP I like hit a 5 year low today. DPM does have some FCF problems as a much larger portion of their revenues are market price based (not fixed fee). Nice to see SNI rebound. Maybe some of the pipeline gathering money is moving into the digital media content area. EKS