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.
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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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They are not wasting any time this morning; at about 1012 hrs manipulators called to accelerate the selling so sell orders are coming in like candy....We are now down over 100 points and these cheating crooks loving it. Be defensive today, the volume is awful and plenty of scumbags, a lethal combination.
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.
Yup,Home D...Hiring 80,000...10,000 more then normal for seasonal...Love that Company, a great investment...
The new Normal for U/E is going to be about 5%, just gonna have to adjust to it..
Steve, good luck on any settlement...And diversify those investments; Growth and Value in an IRA or ROTH if you can....You have age on your side for Growth and reinvested dividends..Good Luck.
A Pool Table is calling.....And All Hail the "Commander-in- Chief." a good man...
Well ABS, yup just stalkin' and trolling.....You forgot that one "H", doesn't it stand for Hussein ??
Yeah guess Beyonce, was fine ? Heard and saw she "sang" it all no lipping here...
Even brought back Destiny's Kids.
well.....gotta go, you can discuss esteemed presidents with others..
I dunno Brutus, not going to forget Energy or several other Sectors to invest in...?
Diversity is the "key" to wise investing....But YOU already know THAT...??
I'm sure the FOREX is a worthwhile endeavor, but me thinks it takes time and a lot of constant monitoring...Maybe not ??
I would rather have a few orders in and go to a Casino or as a shall do, now go play some 8-ball with the "old guys"...Maybe Casino later( i'm on a win streak, for a change)..??
Right DLH........Quality Stocks, are what pay the bills or builds equity investments..
Wish I had those ideas when I was 35...maybe I could have retired a couple years sooner ??
Is this the summer of recovery, well it's February so not as such.
I think it will be a better summer then the last few, Home depot hiring more and housing prices rising should keep new builds going relatively strong. Will it be gangbuster 300k + per month on jobs, most likely not. A deal on spending cuts would help with uncertainty/confidence but that might be asking too much.
We are quite satisfied with Kinder Morgan....
With a 35% gain on FMV,appreciation; And a low of 5%+ dividend(because of value change)...
It is roughly a 40% plus gainer...NOT including previous years divs..Plus sales/buys on ups/downs.
The Energy Company that just keeps on giving and expanding..
STEVE..Don't think they will offer MLPs and LPs in 401Ks because of tax handling, they are different.
Which is what many of these Companies are....They pay back "cash distributions" and not really a dividend per se....Filing K-1s; You would be receiving "capital back" from your original investment.
Put some energy investments in your IRA or other portfolios.
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