When I look at stocks like T, or VZ sporting PE's of 45-50 and an eps of .69 or .91, compare it to this stock with a better yield, better tax treatment albeit a different industry, I'd rather own SPH. And so I say WTF do I know.. ??
One thing that seperates this from NRGY or FGP is that it does have a PE that is not negative or N/A. There's a reason FGP is paying 12%. I look at this as I would a bond. Difference being the tax treatment on the distribution is friendly.
SPH's dividend or distribution was increased. So at this price its nearing 9%. The PE is 30. Richly priced. I've bought 2 times now going south, and it keeps going south. I don't wanna fight the market so no more for now. Support looked good at 40 but whatever. I I was a new investor looking for an entry point I'd nibble here.
Smoke and mirrors can only work for awhile. They are trying to shore up the stock by acquiring Inergy but they will just be getting a company in trouble due to Inergy's overcharging and misusing customers just like Suburban does. Customers are free to choose their suppliers and are waking up to these abuses. Revenues for the year are down more than weather alone would indicate.