nrgy is in it's growth phase. in time earning will catch up to stock price as they get reported. look at projections. I like nrgy for a long term hold and like seeing some of the traders volume going away and setting in as a mlp stock should. cold weather which is what we have had since Sept. in the great lakes will help push propane stocks back up. doesn't make sense that this trades with oil or n.g. as lower costs help propane dealers. i think some who owned this thought propane is drilled for. ya...it's going to be a warm winter right....that's why we've been heating since early sept. Where is that in the governments winter forcast (just before elections). Everyone read accuweather's winter instead.
fdg i have owned. blue rino helped but i didn't see the follow through. Nrgy I like better because of n.g. area and continued growth. In time though propane companies should see growth along with n.g. as N.E. is switching from oil and coal for heating and power to cleaner n.g. and propane under pressure from global warming.
p/e is NOT the best way to value a slow growing MLP. Think about it, if I own a business that has 2-3% earnings growth but can distribute 8+% cash safely, shouldnt I price it based on the safety and size of the distribution and its potential growth? P/E says how much am I paying for a dollar of "earnings", but matters is how much am I paying for a dollar of generated cash flow. Of course that depends on bond yields and the company's outlook, but not on its earnings per se. The market sees it like this as well: propane and barge MLP's get the highest yields, pipelines middle, coal the lowest- exactly the order of slowest to highest growing distribution wise. Take a look at NRP or ARLP and see what an impressive coverage ratio they have. Btw, REITs are valued the same way, so read up on how those are valued.