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Inergy, L.P. Message Board

  • ferdiefor ferdiefor Jan 12, 2010 3:49 PM Flag

    BofA Initiates Buy on NRGY- Timetable?

    BofA has this history of initiating coverage with a buy and then the next thing you know they are one of the lead booking managers on an equity raise. It appears NRGY will be looking to raise equity soon given the three recent transactions. Let's see if the pattern of BofAMerrill plays out.

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    • ferdie, great call. You can be sure that all of the MLP's that have hit recent highs are going to be in the market for more cash for infrastructure. The natural gas and liquids MLP's and pipeline and storage outfits are flying!

      Are we overvalued? I don't think so. Natural gas is cheap as is oil and as demand improves as the economy strengthens these are the new age winners for 2010 and beyond.

      Just my opinion.

      Stay tuned.

      • 1 Reply to sleven
      • My question:

        Is propane sale/distribution as heavily regulated as public utilities?

        Cramer made a comment and NRGY's CEO did not dispute that propane rates to customers could go up 10%/year for the next three years.

        If that is true there is implied in that a lack of regulation similar to the public utilities. PUCs would be loath to allow such increases.

        Does anyone have an answer to my question?

    • You're probably right. Many MLPs have been using the strength to issue equity (ETP and EPD did recently). Those equity raises usually give you a chance to buy in at a lower price. I used last year's equity raise to buy in.