according to Yahoo Technical analysis tool.WEG surfaced in IBD in the Saturday edition. This stock was recommended last spring in Barrons by an old timer portfolio manager. At that time it was in the mid 30's I believe. The association with WMB made me a little nervous about investing. Recently there was a mention of a possible increase in G & A expenses due to the sale by WMB of its GP interest. Do any investors in the know here think there will be any pullback that might provide a better entry point? Or is this thing simply headed straight up? The dividend yield here is very attractive. The old timer said there was virtually no risk here. What is the future of the cash flow here? Is the time horizon for the cash flows very long term? Could a decrease in natural gas prices hurt this stock? If so, is there any risk of a decrease in natural gas prices? What is/are the primary risk factor(s) in connection with this investment? Gracias.
You've got to come up to speed on pipeline MLP's and MLP's in general. They vary, so you should refer to the individual MLP websites. As fare as WEG, it's a producer...of anything. It stores and transports...charging clicks every step of the way. So there's no exposure to fuel prices...that's the beauty of the business model.
I don't know ANYONE who can honestly answer your "pullback" or "straight up" question. That's always the issue, isn't it? My only suggestion is that you consider investing in this type of stock for the long term and don't worry about market swings.
I view this as a long term investment. However, such dramatic price rise is usually rewarded by taking a little money off the table, and waiting for a little pullback to get back in. Still, a great stock, yield, and co.