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Regency Energy Partners Komandit ┼×irket Message Board

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  • lner2512 lner2512 Feb 19, 2010 7:07 PM Flag

    Institutions Adding

    Or are we seeing a continuing unwind on the part of hedge funds and prop desks at banks afraid of the Volcker rule being imposed?

    I own too many RGNC shares now, but I'm thinking the new pipe will mean distributions should increase nicely in 2010 and share prices will follow. I may buy more shares on the prospect that it will trade in the mid to high $20's by year end.

    Any thoughts?

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    • Iner,

      I can see that the properties in our markets are continuing to expand and that bodes well for RGNC. There is an invisible floor under our pps based on the distribution, which to me is sustainable. That makes investment here so worthy.

      The incremental revenues that will flow from pipe adds will benefit both the top and the bottom lines. The capital requirements are well met by cash flow and credit availability. there is no reason that I can imagine for this issue to falter other than a total collapse of our economy and therefore, I too have and will add more shares. My re buy-in is still less than a dollar underwater but recent purchases in the $20- $10 range give me a cost basis near $20.50.

      I am perfectly happy to sit here and collect a nice tax favored distribution but agree that a $30 price is not out of the range of reality later in the year based on a growth scenario domesticly. The price is considerably over the $19.12 last public offering price but has not pierced its 52 week high. Whether you add more shares is based on your own thinking and all i can say to you is that there are worse places to put funds than right here in a nice yielding, secure corner with income plus appreciation likely. just my opinion of course.

      I like this issue as much as EPD and ETP which are outstanding growth stories I have large holdings in.

      Stay tuned.