OKE will soon be back at 70... unless you load up now there wont be time to acquire it at these prices over a period of time.. no way will wall street let a stock with the ability to pay a dividend languish at these prices.. lve never seen so many 100 dollar stocks..... once they kick in the algorithms will push this stock 2 to 5 per cent a day..... and the rich get richer....
No matter, Moose - dividend (which will be maintained) covers all concerns! "Perceived new oil and gas paradigm" is a mirage......will not last beyond June, 2015.
Sentiment: Strong Buy
Please name me one general partner that is currently trading with a single digit P/E. You are likely looking at pure play producers in the shale space that have been beaten down and own a low P/E as a result. Expect the E part of that equation to go way down for those names. OKE is a general partner to a midstream MLP that transports a great deal of natural gas and NGLs. Not a producer.
OKE is the general partner of OKS. I believe OKE owns around 38% of the overall units of OKS as well. So OKE derives revenue from the direct ownership of OKS units and the distribution they receive as well as revenue from the IDRs in place due to being general partner.
ONEOK' lists its ownership of (either) 38% or 41% of ONEOK Partners L.P. and is the sole GP of ONEOK Partners L.P.. However, the portion of ONEOK's website dealing with ONEOK Partners L.P. states that ONEOK Partners GP, LLC is the General Partner of ONEOK Partners L.P. (1) Do any of you readers know the real facts on this? (2) Is ONEOK's sole asset the 38% ownership of ONEOK Partners L.P.?
a lot of stocks have quadrupled since 2008 some are 10x higher thanks to the fed ( its insulting what the banks are paying in interest).... so its hard to know a true value of a stock.. i own some shares in an electric utility and they missed earnings in the last qter and still the stock has gone up 5 dollars since... ive been thinking about buying OKE thru the drip plan just cant seem to do it as of yet... since OKE is a storage/ pipeline company i guess they wont be hurt as bad as some but do they earn as much money when they aren't moving nat. gas thru the pipelines? I was at the local convenience store the other day getting gas and thought to myself I wonder if people are filling up the tank with the low gas prices so i looked around at the pumps and several pumps showed people had put in or 3 and 5 dollars or 10 dollars worth... that doesn't sound like an improving economy to me.......Hard to know what to do....
Many "energy stocks" i've researched as potential buys (in light of the oil downturn) have single digit P/E ratios as i've read is pretty common among energy stocks. how can we explain OKE having such a high ratio at nearly 30?
At first blush one would think a fall in oil and ngas prices would be good for a refining and transportation company the result of an expected rise in demand (lower price) and a drop in input costs. But based on the rather severe drop in ONEOK stock price, which has coincided with the collapse in oil prices, I am questioning that theory, there must be some type of negative correlation. One could simply argue this is a case of the baby being thrown out with the bathwater as the entire fossil fuel space gets slammed, which I would buy if you choose not to look at a longer term chart of ONEOK stock price. ONEOK traded in the $10 range for quite some time before the spike beginning in 2008 that has brought us to these levels. My question is has this stock pop been driven solely by the mania of the perceived new oil and gas paradigm in the United States, the recent huge venture capital inflow? And if this is indeed the case I see a danger of ONEOK returning to mean which translates to a much lower stock price if the deflating of this oil and gas bubble continues as capital flows move in another direction.
Motley Fool Income investor recommended. Not sure how much influence that would have though.
I saw the same thing.... I guess they will have good earnings as well as outlook. I'm buying along with the big money.
Sentiment: Strong Buy
I'm thinking your mid-$30's range is looking about right for a bottom. Oh well, won't be the first time I've sat with an ailing child for a while before they got better !
Only time will tell, but I think oil will blow right past $40 and probably bottom in the mid-$30 range. As you note, it might only stay down there for a brief time, but I think the low $40 range could last for a stretch. Plus, as you note, many producers give a steep discount to that as well. It will get ugly for many producers except for the best hedged names.
My rank of the pipelines would be
Again, just my opinion as an average joe investor upon doing some reading. Good luck to us all...
u assuming $40 crude, maybe for 5 minutes, does that count!! NO
IMO , we don't see $40.00, maybe intraday for 30 seconds
We are not at $50 now either. today at 448.19 , not counting all the discounts!!
Good luck, which pipeline co. do you like WMB, PAA, ENB, or KMI OKE ?
Which one is the best?
Trade in lockstep? Nope, not quite. But do I think a lot of these names will likely be lower with Brent at $40 instead of $50? Yep, I do. Just my opinion.
I wish every trade I made was a home run. In general, I try to go more for singles and doubles than home runs. Always swinging for the fences tends to be risky for one's batting average. I want to stick around the big leagues for a while yet...