Bought some more yesterday in low $22's. Argus has target of $33 dollars, CIBC has $28. 4% yield with high single digit growth and relatively low risk. It is about the only pure pipeline left. MLP value could be high $30's.
True, but even a better value at 21.88 I made a serious addition to my position which I got as a spinoff from DUK. An insider just bought 12000 shares, so something must be good. >4% yield for shares bought under 22.
>>>Worth noting: SE will be going Ex dividend 08-15. <<< Let's hope your assessment is correct. I'm valuing SE at around $30. Having a hard time understanding the weakness the last few days unless just the overall sentiment of the market. Am using this as a buying opportunity.
Wow. How do you come up with the mid 30's for a value on this company. I would like to see the calcs behind that. Even at this low price the PE is around 17 at this years earnings. To me that is even high for a company that basically just transports gas.
It's been a while since I ran the numbers. Believe I used 10x cash flow. Admittedly, the private market will not be able to pay the multiples that they did before, with the repricing of risk in the bond market, but this company is the largest pure pipeline play out there and some of the assets could be sold off, to an MLP or otherwise, the distribution business doesn't seem to fit. They should probably sell at a 20 pe multiple, so high 20's looks reasonable. Can grow at high single digits and you get a fairly good dividend. I don't think the buyout trend is over as long as rates don't move too much.