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AmeriGas Partners LP Message Board

  • ottoman500 ottoman500 Aug 5, 2010 10:05 AM Flag

    APU Valuation

    Anyone else think APU is overvalued at $46?

    I just sold the last of my units. It actually makes me sad since Amerigas is a good company and one of my best long-term investments. I first bought APU in late 2005 around $28 to 29 at a yield of 8%. I've done well with selling a little when it was high and buying when it dropped or during various market crashes. At one time APU was my biggest individual investment.

    But with the recent near-parabolic move I can't stay in. Amerigas has only a 3-5% long-term growth goal. And of couse this year's earnings will be less than last year's outsize earnings. Last quarter's (seasonally slow) earnings was a slight miss.

    S&P's 1 year target was just increased from $43 to 45, but their targets are usually just +10% of where a stock is now. Thompson/First Call's 6 analyst targets are from $40 to 44.

    Even with the recent bull run in MLPs there are still many large ones with higher yield and more growth potential than APU. If APU drops 10% or more from here, I'll be ready and happy to start buying back.


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43.30-0.04(-0.09%)Sep 2 4:01 PMEDT