Inergy, L.P. Message Board
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I am looking for yield, would this be a good pick?
If I could only choose one company for yield, would it be this?
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You could do worse.
Inergy is in the recovery phase after a roller coaster ride due to propane prices.
They are in the process of divesting their propane ops to Suburban Propane. That will leave them as a pure play midstream company. They own the incentive distribution rights and about 75% of NRGM plus some assets at NRGY level.
Long term this is shaping up to be a nice distribution growth story..but first, they have to see if they can complete the SPH deal which looks like it is struggling...- 1 Reply to rrb1981
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So, I should wait? How long...
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A word of caution: Think about the fact that the same management is in place. They didn't do so well with the the propane business.
- 1 Reply to smithbob566
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True. But we really don't know if this mgmt inherited the problem or not. My guess is that they have been with it for a long time and for whatever reason, it wasn't working out.
I'm willing to see what strategy they come up with and then go from there.
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hikris
- 1 Reply to kcatteau
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Propane demand dried up. When you lose your market, it's tough. Management didn't do too badly given the situation.
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Look at market history, nothing goes straight up or down, it fluctuates each year. (Currently approx 1280-1400 S&P)
Its an election year- will "probably" be stronger after the summer doldrums. -
You sound very sensible, but will they ever let the market correct again beyond 5 or 10%?
I guess I should get my list together. Thank you. -
IMHO NRGY is a speculative stock at this point. I took a position for the simple reason that they were getting rid of the propane business which was not working out for them. This leaves them in almost a cash position.
If they expand their NG operations they could pick up some good pipelines or storage sites cheap because NG is now at a historic low.
I'm expecting for them to spell out their future plans sooner or later. As for their keeping the going yield: very iffy.
Good luck. -
IMHO NRGY is a speculative stock at this point. I took a position for the simple reason that they were getting rid of the propane business which was not working out for them. This leaves them in almost a cash position.
If they expand their NG operations they could pick up some good pipelines or storage sites cheap because NG is now at a historic low.
I'm expecting for them to spell out their future plans sooner or later. As for their keeping the going yield: very iffy.
Good luck.
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