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Suburban Propane Partners, L.P. Message Board

  • run35ok run35ok Jul 26, 2012 1:15 PM Flag

    Taking a Position in Inergy

    I think that their being able to expand into their NG business now when prices are so low is a smart move. Obviously their propane retail didn't pan out, but they got a good price at 1.8B. SPH is in a much better position to increase profit margins there, as they have done it before.

    My biggest concern about SPH is that they could stumble in integrating the NRGY purchase as they did with Amway. It took them years to straighten out the mess. Maybe they learned a hard lesson there.

    If SPH plays it right the expanded propane operation should increase revenue and profits, allowing greater dividends. I see SPH in the range of 70-80 within 2 years.

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    • Its entertaining when I'm winning. BTW - If the fed doesn't plan on raising rates till 2015 we're stuck in limbo chasing yield. If by surprise housing does find its footing as the numbers have been showing we could see a rise in rates. Since unemployment is so high there's less participation in 401k's (less employees to contribute) so what would be the catalyst to fix things? thus kicking off a real bull market?

    • I like your attitude:


    • oops, i meant to click on "strong sell" not "strong buy".

    • no need to apologize. i value you your opinion. i ended up taking proceeds and investing in BP who took another tap on the chin today. to some degree, any investment represents a risk and, to some degree, you may refer to market as a casino. i gamble a wee bit and the money i lose is the money i've made in the market. it's entertainment. playing the market is having fun while often reaping a yield while betting on capital appreciation. keeping oneself diversified and not spread too thin, you will out perform mutual funds, T bills, most bonds, and, if you want no risk, let the dough rot in a money market or CD.

    • The rangebound market is exactly the reason I bought SPH. Historically its a low beta stock, i.e. "safe" They sell something people have to buy. That multiple doesn't scare me because in this market its quite common to see bloated PE's on the high yielding stocks. They're priced like bonds. @run35ok The casino was in full swing in the late 90's.
      In 1999, 85 % of the stocks in the NAZDAQ that had no earnings(Zero earnings or losses) went up..It has and always will be a casino, the difference now is that its a 3rd of its size.
      Most sickening to me are the very scary parrallels that we see in Japan that started in 1989. Difference being at the same time we were outsourcing our jobs overseas, we were spending other peoples money buying anything we wanted on credit including big homes. I digress and I apologize for the long winded post. On the bright side they say housing is picking up. Hopefully they buy in areas that SPH sells they're stuff.

    • you do not have to convince me, just belly up to the bar and buy a round

    • I hope you have a lower buy in point than I do, Lord willing it will take me two years to get my initial investment back, IF they progress as you predict they will.

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