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

To: gcrispin who wrote (57843)	8/21/2016 12:30:43 PM
From: Graham Osborn	Respond to of 78667

I am pessimistic for this group. The natural gas distribution and processing industry has been overbuilt such that if everything does not go according to plan the owned assets are going to have significant issues distributing their cash flows under debt covenant requirements. It's very similar to the quandary the shale producers stumbled into. Most of my research has been on LNG which is probably the most speculative of these projects at this time, but there are many parallels across the MLP/ GP group. While there may be money to be made, these buys should be regarded as highly speculative.