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

To: E_K_S who wrote (62629)	10/3/2019 2:42:46 PM
From: bruwin	Respond to of 78753

As you may have determined by now, when it comes to my interrogation of a company, my primary concern is how much of its Gross Revenue ends up at the Bottom Line because that is where the shareholders can get some benefit from their investment plus it also, generally, adds positively to the company's Balance Sheet. Now, depending on the nature of that company's business, certain deductions will take place between its Top Line and its Bottom Line in various degrees, as we see with an MLP and a non-MLP. But at the end of the day, IMO, it's that final number which counts. "Spekulatius pretty good at doing these fair value measures." I'm sure he is .... I've always regarding one of Spekulatius's main areas of expertise is his Analysis of Banks.

To: E_K_S who wrote (62629)	10/3/2019 3:55:30 PM
From: bruwin	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78753

" ... have my larger holdings in WMB and KMI" Seeing as you mentioned those two stocks .... WMB seems to have a debt problem, and less than 1% Net earnings which also reflects on its ROE. Seems in better fundamental shape with good earnings and returns, but also carrying a load of debt with its related expense. It's currently at a discount to its "equity bond". (Item 9 should read "Net Earnings percentage" seeing as we're not in the 'jewellery' business !) Seems to me that "the Market" also prefers KMI to WMB ....

To: E_K_S who wrote (62629)	10/3/2019 7:00:18 PM
From: Spekulatius	1 Recommendation Recommended By E_K_S Read Replies (2) \| Respond to of 78753

re Pipelines, I own WMB right now. it’s one of my larger positions. I have sold most of my KMI and all my ENB and bought WMB from the proceeds. I believe WMB‘s assets to be of higher quality than KMI‘s (they one CO2 tertiary oil recovery assets with pricing risk, as well as a a da lot of terminals, Jones tankers etc that are so lesser quality than WMB‘s pipeline assets. ENB has great assets too, but hard to handicap execution risk around Line 3 and others. My thesis on WMB is that is basically and utility with a 6.4% dividend yield and. I’d single digit dividend growth rate. It’s no more complicated than that. To the extend that management stocks to the low risk utility model, I think shareholders will do fine. If management puts their cowboy hats on and goes on a rodeo and ramps of leverage with low quality expansion projects, than its time to sell. The latter seems to happen every decade, hopefully we have some time left.