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

To: Graham Osborn who wrote (56950)	2/20/2016 5:50:56 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78754

The FCF being negative is due to the growth in assets, which is financed by new units and debt of course. With same assets, they do produce strong FCF. You are correct that they need to scale back their Capex program, but they are actually able to finance themselves for this year (through the sales of the logistics business to SUN), so I don't see any problem in the near term. ETP trades well below NAV (Imo) and even if they trade at a 20% same store yield. Unless they implode due to inability to raise any debt at any price, this is a tough situation to short against. I don't own it, but I do own a healthy amount of BWP and some EEQ. Wish I had bought some ETP around $20 and I think if the units get there again, I will buy a chunk.