When it comes to energy, stick with quality
Enterprise Product Partners may be among the shrewdest oil companies in the land.
This time it is Enterprise Product Partners (EPD) with an 8 million share secondary priced at $54.56, a deal where about a dozen execs and board members so far have filed that they participated in, all with sizable amounts.
Of course the money will be used to pay down debt so the company can expand once again.
Enterprise Product Partners may be among the shrewdest oil companies in the land. It has major pipe coming in and out of all the important shales: Eagle Ford, Permian, Haynesville, Barnett and Marcellus. It is the pipeline company that has just about the best exposure to the huge petrochemical refineries that crave the natural gas liquids feedstock.
It transports an astounding 4.3 million barrels of natural gas liquids, oil, refined product and petrochemicals a day. And it pays 66 cents per unit each quarter, just giving you a 6.5% increase.
Like many of the MLPs, Enterprise can't lay down pipe fast enough, even as its vast network would seem to have pretty much every important field but the Bakken covered.
- Also see: Cramer: when you wish upon a CEO
These master limited partnerships are notorious issuers of stock. EPD is only about a point-and-a-half off its high and it did trade down to $49 from $55 not that long ago on the usual scare that Congress would change the tax status of the company.
But I think it's still a decent entry point to get some of this 4.79% yielder. I would put on half and then hope it goes to a 5% yield through price depreciation.
Keep in mind this is the Big Daddy of all of the MLPs at $50 billion. It will sell down if another big MLP offers stock. Still, it is the highest quality and has the biggest opportunity of all of them right now, even bigger than Kinder Morgan (KMP) and certainly more than Energy Transfer Partners (ETP), even as ETP yields 7.7%. Trust me, I learned the hard way that the yield cannot make up for the price depreciation when the company isn't boosting the distribution or is as poorly run as ETP.
Stick with quality. It's obvious that the insiders sure are. Who am I to say they are wrong? I just hope you get a chance to buy it underneath their price.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in stocks mentioned.
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I mean HOW does anyone with a scintilla of sense NOT ask themselves==
Wait- isn't this the fool that doubled our deficit ?
Added 6 TRILLION and it's still growing ?
more in one term, than ANY OTHER president in our history ?
Is this the same guy ? Why yes it is !
NOW he wants to get serious?
The first 4 years of failure - We don't count that anymore
Wow - the hypocrisy of this empty suit is amazing.
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Yes, Happy days are here again !
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Such talent !!
So classy, such dignity.
Didn't all the great grandchildren love It ?
How's that ?
Sounds good , right?
My backup data for this profound statement ?
uh ,ummm , ahhh
it's truly interesting that company 401K mutual fund plans AVOID having any funds that follow the energy industry.
for the average guy, 401K mutual funds are the primary way to invest for our future. yet access to this energy venue is prohibited.
Why not just say "When it Comes to Stocks Stick with Quality"
Bobo's advice is ridiculous at best and his performance is dismal.
Tomorrow, go long on the Euro against the dollar and short stocks as a hedge. Close out before the end of the day and as always, don't chase the cash.
The usual darkie, beggars, pimping all things Obuma.
Bin Laden's Dead
GM's alive !
Hey, did you happen to notice his birther case is going to the Supreme Court?
What-- Acorn and MSN didn't report on it ?
Look it up.
Maybe you'll smarten up
I doubt it, though
Hail- Barrack Hussein Barry Harrison J Bournel Soetoro Obama !
WHY would U/E go to 6%
BASED ON WHAT ?
Dear Leader told you ?
He told us ALL a lot of sheet.
Most of it lies
Ring any bells ?
I'm sure I pay my landscaper per month , more than you earn in your "business" for a year
Yeah, this putz has a "growing" Limo business and he's posting 24/7/365.
What , you post while driving this huge limo "business" ?
A taxi driver that speaks a little English !
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