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Crosstex Energy, AŞ Message Board

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  • stlbeerman stlbeerman Dec 21, 2005 9:33 PM Flag

    Equity Cost of Capital

    Here is my thesis: management will do what it says it will do.

    By the end of year 2006, $3 dividend. By the end of year 2007, $4 dividend. By the end of year 2008, $5. Dividend. I think these objectives are doable and perhaps conservative.

    I do not know what kind of multiple I will get in 2006, 2007 or 2008. However, if I am getting over $5 in dividends by then, I will take my chances. I would predict that the stock will double by that time.

    If management does not deliver or misleads me, I will sell. I believe the end game for many of these MLP/Gps will be to be acquired and it would not surprise me if XTXI/XTEX or CPNO were acquired.

    For what its worth, I own XTXI, CPNO and ETP.

    Are you the same guy who used to post as geo_investor?