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

To: Graham Osborn who wrote (55634)	7/7/2015 12:53:35 PM
From: E_K_S	Respond to of 78659

Trinity Industries Inc. (NYSE: TRN) - A good LNG play too. ConocoPhillips (NYSE: COP) - peeled off 9% of shares to add more WOPEY Woodside Petroleum Ltd. (OTC Markets: WOPEY) - position 90% complete w/ another 25% buy today @ $25.39/share BHP Billiton Limited (NYSE: BHP) - Upped long term position by 20% Freeport-McMoRan Inc. (FCX) - upped position by 50% Encana Corporation (ECA) - upped position by 50% w/ buy @ $10.65/share Trinity Industries Inc. (NYSE: TRN) made two acquisitions in 2014, WesMor Cryogenic Companies and Alloy Custom Products that allows TRN to be a big player in LNG rail-cars. LNG Transportation At the beginning of 2014, Trinity acquired two companies who specialize in building cryogenic containers - WesMor Cryogenic Companies and Alloy Custom Products. This cryogenic technology is used to transport liquefied natural gas across the country. Trinity can integrate this technology into their railcars and other products which will make the company the go to source for LNG shipping containers. When the LNG market starts to pick up across the country, Trinity will be a big player. This is a long term catalyst that might not make a huge impact on Trinity until several years from now but it's an important one to keep in mind when analyzing Trinity. More reasons to own a position in TRN. It fits w/ my long term LNG theme. I expect China/Asia could/will be big markets for these LNG rail-cars. WOPEY has long term LNG supply agreements w/ China but China lacks the infrastructure to get that LNG to it's power plants and factories. Russia has been mentioned in the press that they could/will supply LNG to China. They will need more of these LNG rail cars too. No position yet in TRN but several more value arguments to start one. ---------------------------------------------------------------- Peeled off 9% of COP I bought in 2009 (@ $35.31/share that included the PSX spin off) and put those proceeds into WOPEY. COP a 4.5% dividend payer and WOPEY a 8% payer. I booked over 55% gains from my COP buy and expect at least a 50% gain in my WOPEY buy by 2020. My WOPEY position is 90% complete w/ my avg cost at $26.52/share. WOPEY has an 8 PE about 65% lower than COP. However, w/ historical low NG prices, I expect WOPEY to be slightly profitable but do expect them to cover their dividend. -------------------------------------------------------------------- Big sell off in natural resource and commodity stocks due to China's perceived slow growth. Upped my FCX position by 50%, Upped my BHP core holding by 20% and added a few more shares of ECA. Most all of these companies selling at 5 year lows (FCX at all time low). In good times they all have paid dividends and each company has good assets. Debt levels are high in FCX but they plan to spin off their recent E&P acquisition that will be used to reduce debt. ECA has been paying down their debt and recently BHP completed a "demerger" spinning off South32 ( Mining giant BHP to spin off South32 with modest debt). You can not time these buys in out-of-favor sectors, but the market tends to over react and generally the business cycle will reverse and move higher in 3-5 years. I have found resource stocks to be good dividend payers while you wait for fair value. The value proposition is in their raw material assets and the company's long term efforts to reduce debt. My top 4 core portfolio positions are; KMI, CVX, COP & BHP. These holdings represent 25% of my taxable portfolio and today's sell/buys also allow re-balances COP & BHP. FWIW, BHP selling at/near it's Grahm No. value of $37.58/share. I did my last sale at $98.00/share in 2011, so my buy today at $ 37.87/share seems like a good entry point as this was/near the 2009 low. Their 6.5% dividend s/d be safe too. EKS